Correlation Between HaiXin Foods and China Construction
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By analyzing existing cross correlation between HaiXin Foods Co and China Construction Bank, you can compare the effects of market volatilities on HaiXin Foods and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and China Construction.
Diversification Opportunities for HaiXin Foods and China Construction
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HaiXin and China is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and China Construction go up and down completely randomly.
Pair Corralation between HaiXin Foods and China Construction
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the China Construction. In addition to that, HaiXin Foods is 2.65 times more volatile than China Construction Bank. It trades about -0.12 of its total potential returns per unit of risk. China Construction Bank is currently generating about -0.13 per unit of volatility. If you would invest 877.00 in China Construction Bank on October 28, 2024 and sell it today you would lose (36.00) from holding China Construction Bank or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. China Construction Bank
Performance |
| Timeline |
| HaiXin Foods |
| China Construction Bank |
HaiXin Foods and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and China Construction
The main advantage of trading using opposite HaiXin Foods and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.| HaiXin Foods vs. Tibet Huayu Mining | HaiXin Foods vs. Qingdao Choho Industrial | HaiXin Foods vs. Anji Foodstuff Co | HaiXin Foods vs. Gem Year Industrial Co |
| China Construction vs. Guangdong Transtek Medical | China Construction vs. Shandong Intco Medical | China Construction vs. Hengkang Medical Group | China Construction vs. Bomesc Offshore Engineering |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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