Correlation Between HaiXin Foods and Dongfeng Automobile
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By analyzing existing cross correlation between HaiXin Foods Co and Dongfeng Automobile Co, you can compare the effects of market volatilities on HaiXin Foods and Dongfeng Automobile 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 Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Dongfeng Automobile.
Diversification Opportunities for HaiXin Foods and Dongfeng Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HaiXin and Dongfeng is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between HaiXin Foods and Dongfeng Automobile
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 0.85 times more return on investment than Dongfeng Automobile. However, HaiXin Foods Co is 1.18 times less risky than Dongfeng Automobile. It trades about 0.24 of its potential returns per unit of risk. Dongfeng Automobile Co is currently generating about 0.11 per unit of risk. If you would invest 373.00 in HaiXin Foods Co on August 30, 2024 and sell it today you would earn a total of 78.00 from holding HaiXin Foods Co or generate 20.91% 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. Dongfeng Automobile Co
Performance |
| Timeline |
| HaiXin Foods |
| Dongfeng Automobile |
HaiXin Foods and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Dongfeng Automobile
The main advantage of trading using opposite HaiXin Foods and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| HaiXin Foods vs. Industrial and Commercial | HaiXin Foods vs. China Construction Bank | HaiXin Foods vs. Agricultural Bank of | HaiXin Foods vs. Bank of China |
| Dongfeng Automobile vs. Ming Yang Smart | Dongfeng Automobile vs. 159681 | Dongfeng Automobile vs. 159005 | Dongfeng Automobile vs. 516220 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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