Correlation Between HaiXin Foods and Sichuan Hebang
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By analyzing existing cross correlation between HaiXin Foods Co and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on HaiXin Foods and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Sichuan Hebang.
Diversification Opportunities for HaiXin Foods and Sichuan Hebang
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HaiXin and Sichuan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Sichuan Hebang go up and down completely randomly.
Pair Corralation between HaiXin Foods and Sichuan Hebang
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.62 times more return on investment than Sichuan Hebang. However, HaiXin Foods is 1.62 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.07 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.07 per unit of risk. If you would invest 337.00 in HaiXin Foods Co on October 18, 2024 and sell it today you would earn a total of 95.00 from holding HaiXin Foods Co or generate 28.19% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| HaiXin Foods |
| Sichuan Hebang Biote |
HaiXin Foods and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Sichuan Hebang
The main advantage of trading using opposite HaiXin Foods and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| HaiXin Foods vs. Ping An Insurance | HaiXin Foods vs. Shanghai Yanpu Metal | HaiXin Foods vs. Western Metal Materials | HaiXin Foods vs. Chengtun Mining Group |
| Sichuan Hebang vs. Unisplendour Corp | Sichuan Hebang vs. HaiXin Foods Co | Sichuan Hebang vs. Fujian Newland Computer | Sichuan Hebang vs. Tianjin Hi Tech Development |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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