Correlation Between HaiXin Foods and Cathay Biotech
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By analyzing existing cross correlation between HaiXin Foods Co and Cathay Biotech, you can compare the effects of market volatilities on HaiXin Foods and Cathay Biotech 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 Cathay Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Cathay Biotech.
Diversification Opportunities for HaiXin Foods and Cathay Biotech
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between HaiXin and Cathay is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Cathay Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Biotech 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 Cathay Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Biotech has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Cathay Biotech go up and down completely randomly.
Pair Corralation between HaiXin Foods and Cathay Biotech
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.22 times more return on investment than Cathay Biotech. However, HaiXin Foods is 1.22 times more volatile than Cathay Biotech. It trades about -0.01 of its potential returns per unit of risk. Cathay Biotech is currently generating about -0.03 per unit of risk. If you would invest 610.00 in HaiXin Foods Co on October 25, 2024 and sell it today you would lose (203.00) from holding HaiXin Foods Co or give up 33.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Cathay Biotech
Performance |
| Timeline |
| HaiXin Foods |
| Cathay Biotech |
HaiXin Foods and Cathay Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Cathay Biotech
The main advantage of trading using opposite HaiXin Foods and Cathay Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Cathay Biotech 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 Cathay Biotech will offset losses from the drop in Cathay Biotech's long position.| HaiXin Foods vs. Tibet Huayu Mining | HaiXin Foods vs. Western Mining Co | HaiXin Foods vs. Shenzhen Silver Basis | HaiXin Foods vs. Gansu Huangtai Wine marketing |
| Cathay Biotech vs. Digiwin Software Co | Cathay Biotech vs. Bangyan Technology Co | Cathay Biotech vs. Dhc Software Co | Cathay Biotech vs. Jiujiang Shanshui 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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