Correlation Between HaiXin Foods and China Resources
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By analyzing existing cross correlation between HaiXin Foods Co and China Resources Boya, you can compare the effects of market volatilities on HaiXin Foods and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and China Resources.
Diversification Opportunities for HaiXin Foods and China Resources
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HaiXin and China is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and China Resources go up and down completely randomly.
Pair Corralation between HaiXin Foods and China Resources
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the China Resources. In addition to that, HaiXin Foods is 6.28 times more volatile than China Resources Boya. It trades about -0.09 of its total potential returns per unit of risk. China Resources Boya is currently generating about -0.19 per unit of volatility. If you would invest 3,096 in China Resources Boya on October 9, 2024 and sell it today you would lose (126.00) from holding China Resources Boya or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. China Resources Boya
Performance |
| Timeline |
| HaiXin Foods |
| China Resources Boya |
HaiXin Foods and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and China Resources
The main advantage of trading using opposite HaiXin Foods and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| HaiXin Foods vs. Industrial and Commercial | HaiXin Foods vs. Agricultural Bank of | HaiXin Foods vs. China Construction Bank | HaiXin Foods vs. Bank of China |
| China Resources vs. Xingguang Agricultural Mach | China Resources vs. Qingdao Foods Co | China Resources vs. Long Yuan Construction | China Resources vs. Jinzai Food Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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