Correlation Between HaiXin Foods and Jiangsu Financial
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By analyzing existing cross correlation between HaiXin Foods Co and Jiangsu Financial Leasing, you can compare the effects of market volatilities on HaiXin Foods and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Jiangsu Financial.
Diversification Opportunities for HaiXin Foods and Jiangsu Financial
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HaiXin and Jiangsu is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Jiangsu Financial go up and down completely randomly.
Pair Corralation between HaiXin Foods and Jiangsu Financial
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Jiangsu Financial. In addition to that, HaiXin Foods is 3.95 times more volatile than Jiangsu Financial Leasing. It trades about -0.36 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.01 per unit of volatility. If you would invest 508.00 in Jiangsu Financial Leasing on October 17, 2024 and sell it today you would lose (2.00) from holding Jiangsu Financial Leasing or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| HaiXin Foods |
| Jiangsu Financial Leasing |
HaiXin Foods and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Jiangsu Financial
The main advantage of trading using opposite HaiXin Foods and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| HaiXin Foods vs. Harbin Air Conditioning | HaiXin Foods vs. Chengdu Xingrong Investment | HaiXin Foods vs. Jiangsu Yueda Investment | HaiXin Foods vs. Fuzhou Rockchip Electronics |
| Jiangsu Financial vs. Leyard Optoelectronic | Jiangsu Financial vs. Sihui Fuji Electronics | Jiangsu Financial vs. Jinlong Machinery Electronic | Jiangsu Financial vs. HaiXin 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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