Correlation Between HaiXin Foods and Nexchip Semiconductor
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By analyzing existing cross correlation between HaiXin Foods Co and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on HaiXin Foods and Nexchip Semiconductor 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 Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Nexchip Semiconductor.
Diversification Opportunities for HaiXin Foods and Nexchip Semiconductor
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HaiXin and Nexchip is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor 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 Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between HaiXin Foods and Nexchip Semiconductor
Assuming the 90 days trading horizon HaiXin Foods is expected to generate 1.35 times less return on investment than Nexchip Semiconductor. But when comparing it to its historical volatility, HaiXin Foods Co is 1.34 times less risky than Nexchip Semiconductor. It trades about 0.25 of its potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,035 in Nexchip Semiconductor Corp on September 1, 2024 and sell it today you would earn a total of 591.00 from holding Nexchip Semiconductor Corp or generate 29.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| HaiXin Foods |
| Nexchip Semiconductor |
HaiXin Foods and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Nexchip Semiconductor
The main advantage of trading using opposite HaiXin Foods and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Nexchip Semiconductor 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 Nexchip Semiconductor will offset losses from the drop in Nexchip Semiconductor's long position.| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Shenzhen Hifuture Electric | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Shenyang Huitian Thermal |
| Nexchip Semiconductor vs. Industrial and Commercial | Nexchip Semiconductor vs. Kweichow Moutai Co | Nexchip Semiconductor vs. Agricultural Bank of | Nexchip Semiconductor vs. China Mobile Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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