Correlation Between HaiXin Foods and Shanghai Bailian
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By analyzing existing cross correlation between HaiXin Foods Co and Shanghai Bailian Group, you can compare the effects of market volatilities on HaiXin Foods and Shanghai Bailian 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 Shanghai Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Shanghai Bailian.
Diversification Opportunities for HaiXin Foods and Shanghai Bailian
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HaiXin and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Shanghai Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Shanghai Bailian go up and down completely randomly.
Pair Corralation between HaiXin Foods and Shanghai Bailian
Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 2.04 times more return on investment than Shanghai Bailian. However, HaiXin Foods is 2.04 times more volatile than Shanghai Bailian Group. It trades about 0.35 of its potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.21 per unit of risk. If you would invest 445.00 in HaiXin Foods Co on September 12, 2024 and sell it today you would earn a total of 145.00 from holding HaiXin Foods Co or generate 32.58% 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. Shanghai Bailian Group
Performance |
| Timeline |
| HaiXin Foods |
| Shanghai Bailian |
HaiXin Foods and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Shanghai Bailian
The main advantage of trading using opposite HaiXin Foods and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Shanghai Bailian 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 Shanghai Bailian will offset losses from the drop in Shanghai Bailian's long position.| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China State Construction | HaiXin Foods vs. China Railway Group |
| Shanghai Bailian vs. Jinhui Mining Co | Shanghai Bailian vs. Uroica Mining Safety | Shanghai Bailian vs. Guangdong Marubi Biotechnology | Shanghai Bailian vs. Shenzhen Bioeasy Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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