Correlation Between HaiXin Foods and Liuzhou Chemical
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By analyzing existing cross correlation between HaiXin Foods Co and Liuzhou Chemical Industry, you can compare the effects of market volatilities on HaiXin Foods and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Liuzhou Chemical.
Diversification Opportunities for HaiXin Foods and Liuzhou Chemical
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HaiXin and Liuzhou is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between HaiXin Foods and Liuzhou Chemical
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.13 times more return on investment than Liuzhou Chemical. However, HaiXin Foods is 1.13 times more volatile than Liuzhou Chemical Industry. It trades about 0.16 of its potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.15 per unit of risk. If you would invest 352.00 in HaiXin Foods Co on August 28, 2024 and sell it today you would earn a total of 79.00 from holding HaiXin Foods Co or generate 22.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Liuzhou Chemical Industry
Performance |
| Timeline |
| HaiXin Foods |
| Liuzhou Chemical Industry |
HaiXin Foods and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Liuzhou Chemical
The main advantage of trading using opposite HaiXin Foods and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China State Construction | HaiXin Foods vs. China Railway Group |
| Liuzhou Chemical vs. Zijin Mining Group | Liuzhou Chemical vs. Wanhua Chemical Group | Liuzhou Chemical vs. Baoshan Iron Steel | Liuzhou Chemical vs. Shandong Gold Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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