Correlation Between HaiXin Foods and Chongqing Zhifei
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By analyzing existing cross correlation between HaiXin Foods Co and Chongqing Zhifei Bio, you can compare the effects of market volatilities on HaiXin Foods and Chongqing Zhifei 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 Chongqing Zhifei. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Chongqing Zhifei.
Diversification Opportunities for HaiXin Foods and Chongqing Zhifei
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HaiXin and Chongqing is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Chongqing Zhifei Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Zhifei Bio 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 Chongqing Zhifei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Zhifei Bio has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Chongqing Zhifei go up and down completely randomly.
Pair Corralation between HaiXin Foods and Chongqing Zhifei
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.38 times more return on investment than Chongqing Zhifei. However, HaiXin Foods is 1.38 times more volatile than Chongqing Zhifei Bio. It trades about 0.35 of its potential returns per unit of risk. Chongqing Zhifei Bio is currently generating about -0.06 per unit of risk. If you would invest 445.00 in HaiXin Foods Co on September 12, 2024 and sell it today you would earn a total of 145.00 from holding HaiXin Foods Co or generate 32.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Chongqing Zhifei Bio
Performance |
| Timeline |
| HaiXin Foods |
| Chongqing Zhifei Bio |
HaiXin Foods and Chongqing Zhifei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Chongqing Zhifei
The main advantage of trading using opposite HaiXin Foods and Chongqing Zhifei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Chongqing Zhifei 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 Chongqing Zhifei will offset losses from the drop in Chongqing Zhifei's long position.| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China State Construction | HaiXin Foods vs. China Railway Group |
| Chongqing Zhifei vs. Chengdu Xingrong Investment | Chongqing Zhifei vs. Beijing Jiaman Dress | Chongqing Zhifei vs. Harbin Hatou Investment | Chongqing Zhifei vs. Ningxia Younglight Chemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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