Correlation Between HaiXin Foods and Tianjin Hi
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By analyzing existing cross correlation between HaiXin Foods Co and Tianjin Hi Tech Development, you can compare the effects of market volatilities on HaiXin Foods and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Tianjin Hi.
Diversification Opportunities for HaiXin Foods and Tianjin Hi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Tianjin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Tianjin Hi go up and down completely randomly.
Pair Corralation between HaiXin Foods and Tianjin Hi
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Tianjin Hi. In addition to that, HaiXin Foods is 1.05 times more volatile than Tianjin Hi Tech Development. It trades about -0.01 of its total potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.0 per unit of volatility. If you would invest 346.00 in Tianjin Hi Tech Development on October 18, 2024 and sell it today you would lose (66.00) from holding Tianjin Hi Tech Development or give up 19.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| HaiXin Foods |
| Tianjin Hi Tech |
HaiXin Foods and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Tianjin Hi
The main advantage of trading using opposite HaiXin Foods and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| HaiXin Foods vs. Ping An Insurance | HaiXin Foods vs. Shanghai Yanpu Metal | HaiXin Foods vs. Western Metal Materials | HaiXin Foods vs. Chengtun Mining Group |
| Tianjin Hi vs. HaiXin Foods Co | Tianjin Hi vs. Harbin Hatou Investment | Tianjin Hi vs. Zhongrun Resources Investment | Tianjin Hi vs. Great Sun Foods Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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