Correlation Between HaiXin Foods and Zhejiang Yayi
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By analyzing existing cross correlation between HaiXin Foods Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on HaiXin Foods and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Zhejiang Yayi.
Diversification Opportunities for HaiXin Foods and Zhejiang Yayi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HaiXin and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between HaiXin Foods and Zhejiang Yayi
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.82 times more return on investment than Zhejiang Yayi. However, HaiXin Foods is 1.82 times more volatile than Zhejiang Yayi Metal. It trades about 0.41 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.07 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. Zhejiang Yayi Metal
Performance |
| Timeline |
| HaiXin Foods |
| Zhejiang Yayi Metal |
HaiXin Foods and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Zhejiang Yayi
The main advantage of trading using opposite HaiXin Foods and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi'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 |
| Zhejiang Yayi vs. Lutian Machinery Co | Zhejiang Yayi vs. China Longyuan Power | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. Bank of China |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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