Correlation Between HaiXin Foods and Everdisplay Optronics
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By analyzing existing cross correlation between HaiXin Foods Co and Everdisplay Optronics Shanghai, you can compare the effects of market volatilities on HaiXin Foods and Everdisplay Optronics 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 Everdisplay Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Everdisplay Optronics.
Diversification Opportunities for HaiXin Foods and Everdisplay Optronics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HaiXin and Everdisplay is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Everdisplay Optronics Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everdisplay Optronics 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 Everdisplay Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everdisplay Optronics has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Everdisplay Optronics go up and down completely randomly.
Pair Corralation between HaiXin Foods and Everdisplay Optronics
Assuming the 90 days trading horizon HaiXin Foods Co is expected to under-perform the Everdisplay Optronics. In addition to that, HaiXin Foods is 2.7 times more volatile than Everdisplay Optronics Shanghai. It trades about -0.04 of its total potential returns per unit of risk. Everdisplay Optronics Shanghai is currently generating about -0.11 per unit of volatility. If you would invest 244.00 in Everdisplay Optronics Shanghai on October 30, 2024 and sell it today you would lose (21.00) from holding Everdisplay Optronics Shanghai or give up 8.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Everdisplay Optronics Shanghai
Performance |
| Timeline |
| HaiXin Foods |
| Everdisplay Optronics |
HaiXin Foods and Everdisplay Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Everdisplay Optronics
The main advantage of trading using opposite HaiXin Foods and Everdisplay Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Everdisplay Optronics 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 Everdisplay Optronics will offset losses from the drop in Everdisplay Optronics' long position.| HaiXin Foods vs. Shandong Sinoglory Health | HaiXin Foods vs. Anhui Huaheng Biotechnology | HaiXin Foods vs. Jiangsu GDK Biotechnology | HaiXin Foods vs. Heren Health Co |
| Everdisplay Optronics vs. Chengdu Kanghua Biological | Everdisplay Optronics vs. Suzhou Novoprotein Scientific | Everdisplay Optronics vs. Aluminum Corp of | Everdisplay Optronics vs. COL Digital Publishing |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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