Correlation Between HaiXin Foods and Zhejiang Juhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between HaiXin Foods Co and Zhejiang Juhua Co, you can compare the effects of market volatilities on HaiXin Foods and Zhejiang Juhua 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 Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Zhejiang Juhua.
Diversification Opportunities for HaiXin Foods and Zhejiang Juhua
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between HaiXin and Zhejiang is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between HaiXin Foods and Zhejiang Juhua
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Zhejiang Juhua. In addition to that, HaiXin Foods is 2.21 times more volatile than Zhejiang Juhua Co. It trades about -0.04 of its total potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.16 per unit of volatility. If you would invest 2,237 in Zhejiang Juhua Co on October 30, 2024 and sell it today you would earn a total of 330.00 from holding Zhejiang Juhua Co or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Zhejiang Juhua Co
Performance |
| Timeline |
| HaiXin Foods |
| Zhejiang Juhua |
HaiXin Foods and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Zhejiang Juhua
The main advantage of trading using opposite HaiXin Foods and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Zhejiang Juhua 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 Juhua will offset losses from the drop in Zhejiang Juhua's long position.| HaiXin Foods vs. Shandong Sinoglory Health | HaiXin Foods vs. Anhui Huaheng Biotechnology | HaiXin Foods vs. Jiangsu GDK Biotechnology | HaiXin Foods vs. Heren Health Co |
| Zhejiang Juhua vs. Dawning Information Industry | Zhejiang Juhua vs. Tongding Interconnection Information | Zhejiang Juhua vs. Ningbo Kangqiang Electronics | Zhejiang Juhua vs. TongFu Microelectronics 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |