Correlation Between HaiXin Foods and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between HaiXin Foods Co and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on HaiXin Foods and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Beijing HuaYuanYiTong.
Diversification Opportunities for HaiXin Foods and Beijing HuaYuanYiTong
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HaiXin and Beijing is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between HaiXin Foods and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.21 times more return on investment than Beijing HuaYuanYiTong. However, HaiXin Foods is 1.21 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about 0.41 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.09 per unit of risk. If you would invest 431.00 in HaiXin Foods Co on September 13, 2024 and sell it today you would earn a total of 159.00 from holding HaiXin Foods Co or generate 36.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| HaiXin Foods |
| Beijing HuaYuanYiTong |
HaiXin Foods and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Beijing HuaYuanYiTong
The main advantage of trading using opposite HaiXin Foods and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Kangyue Technology Co | HaiXin Foods vs. Shenzhen Hifuture Electric |
| Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong vs. Loctek Ergonomic Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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