Correlation Between HaiXin Foods and Zhongtai Securities
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By analyzing existing cross correlation between HaiXin Foods Co and Zhongtai Securities Co, you can compare the effects of market volatilities on HaiXin Foods and Zhongtai Securities 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 Zhongtai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Zhongtai Securities.
Diversification Opportunities for HaiXin Foods and Zhongtai Securities
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HaiXin and Zhongtai is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Zhongtai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtai Securities 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 Zhongtai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtai Securities has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Zhongtai Securities go up and down completely randomly.
Pair Corralation between HaiXin Foods and Zhongtai Securities
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Zhongtai Securities. In addition to that, HaiXin Foods is 1.62 times more volatile than Zhongtai Securities Co. It trades about -0.01 of its total potential returns per unit of risk. Zhongtai Securities Co is currently generating about 0.0 per unit of volatility. If you would invest 696.00 in Zhongtai Securities Co on October 9, 2024 and sell it today you would lose (70.00) from holding Zhongtai Securities Co or give up 10.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
HaiXin Foods Co vs. Zhongtai Securities Co
Performance |
| Timeline |
| HaiXin Foods |
| Zhongtai Securities |
HaiXin Foods and Zhongtai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Zhongtai Securities
The main advantage of trading using opposite HaiXin Foods and Zhongtai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Zhongtai Securities 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 Zhongtai Securities will offset losses from the drop in Zhongtai Securities' long position.| HaiXin Foods vs. Tianshui Huatian Technology | HaiXin Foods vs. CSSC Offshore Marine | HaiXin Foods vs. Offshore Oil Engineering | HaiXin Foods vs. Ningbo MedicalSystem Biotechnology |
| Zhongtai Securities vs. Ye Chiu Metal | Zhongtai Securities vs. Cansino Biologics | Zhongtai Securities vs. Ningbo Fujia Industrial | Zhongtai Securities vs. Suzhou Industrial Park |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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