Correlation Between HaiXin Foods and Shanghai Rural
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By analyzing existing cross correlation between HaiXin Foods Co and Shanghai Rural Commercial, you can compare the effects of market volatilities on HaiXin Foods and Shanghai Rural 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 Shanghai Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Shanghai Rural.
Diversification Opportunities for HaiXin Foods and Shanghai Rural
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Shanghai Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rural Commercial 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 Shanghai Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rural Commercial has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Shanghai Rural go up and down completely randomly.
Pair Corralation between HaiXin Foods and Shanghai Rural
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 2.05 times more return on investment than Shanghai Rural. However, HaiXin Foods is 2.05 times more volatile than Shanghai Rural Commercial. It trades about 0.41 of its potential returns per unit of risk. Shanghai Rural Commercial is currently generating about 0.13 per unit of risk. If you would invest 431.00 in HaiXin Foods Co on September 13, 2024 and sell it today you would earn a total of 159.00 from holding HaiXin Foods Co or generate 36.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Shanghai Rural Commercial
Performance |
| Timeline |
| HaiXin Foods |
| Shanghai Rural Commercial |
HaiXin Foods and Shanghai Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Shanghai Rural
The main advantage of trading using opposite HaiXin Foods and Shanghai Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Shanghai Rural 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 Shanghai Rural will offset losses from the drop in Shanghai Rural's long position.| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Kangyue Technology Co | HaiXin Foods vs. Shenzhen Hifuture Electric |
| Shanghai Rural vs. Kontour Medical Technology | Shanghai Rural vs. GKHT Medical Technology | Shanghai Rural vs. Yuan Longping High tech | Shanghai Rural vs. Double Medical Technology |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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