Correlation Between HaiXin Foods and Guangxi Wuzhou
Specify exactly 2 symbols:
By analyzing existing cross correlation between HaiXin Foods Co and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on HaiXin Foods and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Guangxi Wuzhou.
Diversification Opportunities for HaiXin Foods and Guangxi Wuzhou
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HaiXin and Guangxi is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between HaiXin Foods and Guangxi Wuzhou
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Guangxi Wuzhou. In addition to that, HaiXin Foods is 1.02 times more volatile than Guangxi Wuzhou Communications. It trades about -0.23 of its total potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.09 per unit of volatility. If you would invest 405.00 in Guangxi Wuzhou Communications on October 12, 2024 and sell it today you would earn a total of 30.00 from holding Guangxi Wuzhou Communications or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| HaiXin Foods |
| Guangxi Wuzhou Commu |
HaiXin Foods and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Guangxi Wuzhou
The main advantage of trading using opposite HaiXin Foods and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| HaiXin Foods vs. Masterwork Machinery | HaiXin Foods vs. Xingguang Agricultural Mach | HaiXin Foods vs. Kuangda Technology Group | HaiXin Foods vs. Shaanxi Construction Machinery |
| Guangxi Wuzhou vs. Hubei Forbon Technology | Guangxi Wuzhou vs. Jinling Hotel Corp | Guangxi Wuzhou vs. Bosera CMSK Industrial | Guangxi Wuzhou vs. Maxvision Technology Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |