Correlation Between HaiXin Foods and Guangdong TianYiMa
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By analyzing existing cross correlation between HaiXin Foods Co and Guangdong TianYiMa Information, you can compare the effects of market volatilities on HaiXin Foods and Guangdong TianYiMa 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 Guangdong TianYiMa. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Guangdong TianYiMa.
Diversification Opportunities for HaiXin Foods and Guangdong TianYiMa
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HaiXin and Guangdong is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Guangdong TianYiMa Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong TianYiMa 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 Guangdong TianYiMa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong TianYiMa has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Guangdong TianYiMa go up and down completely randomly.
Pair Corralation between HaiXin Foods and Guangdong TianYiMa
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Guangdong TianYiMa. But the stock apears to be less risky and, when comparing its historical volatility, HaiXin Foods Co is 1.46 times less risky than Guangdong TianYiMa. The stock trades about -0.02 of its potential returns per unit of risk. The Guangdong TianYiMa Information is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,127 in Guangdong TianYiMa Information on October 31, 2024 and sell it today you would lose (392.00) from holding Guangdong TianYiMa Information or give up 12.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Guangdong TianYiMa Information
Performance |
| Timeline |
| HaiXin Foods |
| Guangdong TianYiMa |
HaiXin Foods and Guangdong TianYiMa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Guangdong TianYiMa
The main advantage of trading using opposite HaiXin Foods and Guangdong TianYiMa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Guangdong TianYiMa 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 Guangdong TianYiMa will offset losses from the drop in Guangdong TianYiMa's long position.| HaiXin Foods vs. Guangzhou Ruoyuchen Information | HaiXin Foods vs. Sublime China Information | HaiXin Foods vs. Hygon Information Technology | HaiXin Foods vs. Guangdong TianYiMa Information |
| Guangdong TianYiMa vs. China State Construction | Guangdong TianYiMa vs. Poly Real Estate | Guangdong TianYiMa vs. China Vanke Co | Guangdong TianYiMa vs. China Merchants Shekou |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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