Correlation Between HaiXin Foods and Hangzhou Weiguang
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By analyzing existing cross correlation between HaiXin Foods Co and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on HaiXin Foods and Hangzhou Weiguang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HaiXin Foods with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Hangzhou Weiguang.
Diversification Opportunities for HaiXin Foods and Hangzhou Weiguang
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Hangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and HaiXin Foods is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HaiXin Foods Co are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between HaiXin Foods and Hangzhou Weiguang
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Hangzhou Weiguang. In addition to that, HaiXin Foods is 1.64 times more volatile than Hangzhou Weiguang Electronic. It trades about -0.06 of its total potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.07 per unit of volatility. If you would invest 2,435 in Hangzhou Weiguang Electronic on October 22, 2024 and sell it today you would earn a total of 71.00 from holding Hangzhou Weiguang Electronic or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| HaiXin Foods |
| Hangzhou Weiguang |
HaiXin Foods and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Hangzhou Weiguang
The main advantage of trading using opposite HaiXin Foods and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Hangzhou Weiguang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| HaiXin Foods vs. GreenTech Environmental Co | HaiXin Foods vs. Changjiang Publishing Media | HaiXin Foods vs. Shanghai Action Education | HaiXin Foods vs. Tangel Publishing |
| Hangzhou Weiguang vs. HeNan Splendor Science | Hangzhou Weiguang vs. Tongding Interconnection Information | Hangzhou Weiguang vs. Nanjing Canatal Data | Hangzhou Weiguang vs. Unisplendour Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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