Correlation Between HaiXin Foods and Shandong Homey
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By analyzing existing cross correlation between HaiXin Foods Co and Shandong Homey Aquatic, you can compare the effects of market volatilities on HaiXin Foods and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Shandong Homey.
Diversification Opportunities for HaiXin Foods and Shandong Homey
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HaiXin and Shandong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Shandong Homey go up and down completely randomly.
Pair Corralation between HaiXin Foods and Shandong Homey
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Shandong Homey. In addition to that, HaiXin Foods is 1.54 times more volatile than Shandong Homey Aquatic. It trades about -0.4 of its total potential returns per unit of risk. Shandong Homey Aquatic is currently generating about -0.37 per unit of volatility. If you would invest 286.00 in Shandong Homey Aquatic on October 14, 2024 and sell it today you would lose (68.00) from holding Shandong Homey Aquatic or give up 23.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Shandong Homey Aquatic
Performance |
| Timeline |
| HaiXin Foods |
| Shandong Homey Aquatic |
HaiXin Foods and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Shandong Homey
The main advantage of trading using opposite HaiXin Foods and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| HaiXin Foods vs. Xinjiang Baodi Mining | HaiXin Foods vs. Sharetronic Data Technology | HaiXin Foods vs. Digiwin Software Co | HaiXin Foods vs. Tianjin Silvery Dragon |
| Shandong Homey vs. Harbin Hatou Investment | Shandong Homey vs. GRG Banking Equipment | Shandong Homey vs. Bank of Suzhou | Shandong Homey vs. Sunny Loan Top |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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