Correlation Between HaiXin Foods and Flat Glass
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By analyzing existing cross correlation between HaiXin Foods Co and Flat Glass Group, you can compare the effects of market volatilities on HaiXin Foods and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Flat Glass.
Diversification Opportunities for HaiXin Foods and Flat Glass
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HaiXin and Flat is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Flat Glass go up and down completely randomly.
Pair Corralation between HaiXin Foods and Flat Glass
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Flat Glass. But the stock apears to be less risky and, when comparing its historical volatility, HaiXin Foods Co is 1.09 times less risky than Flat Glass. The stock trades about -0.02 of its potential returns per unit of risk. The Flat Glass Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,450 in Flat Glass Group on August 30, 2024 and sell it today you would lose (890.00) from holding Flat Glass Group or give up 25.8% 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. Flat Glass Group
Performance |
| Timeline |
| HaiXin Foods |
| Flat Glass Group |
HaiXin Foods and Flat Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Flat Glass
The main advantage of trading using opposite HaiXin Foods and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.| HaiXin Foods vs. Henan Shuanghui Investment | HaiXin Foods vs. Xiandai Investment Co | HaiXin Foods vs. Jointo Energy Investment | HaiXin Foods vs. Tieling Newcity Investment |
| Flat Glass vs. Xiandai Investment Co | Flat Glass vs. Digital China Information | Flat Glass vs. Zhongrun Resources Investment | Flat Glass vs. Yonyou Auto Information |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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