Correlation Between DO Home and HaiXin Foods
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By analyzing existing cross correlation between DO Home Collection and HaiXin Foods Co, you can compare the effects of market volatilities on DO Home and HaiXin Foods 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 DO Home with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and HaiXin Foods.
Diversification Opportunities for DO Home and HaiXin Foods
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002798 and HaiXin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and DO Home 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 DO Home Collection are associated (or correlated) with HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of DO Home i.e., DO Home and HaiXin Foods go up and down completely randomly.
Pair Corralation between DO Home and HaiXin Foods
Assuming the 90 days trading horizon DO Home is expected to generate 3.04 times less return on investment than HaiXin Foods. But when comparing it to its historical volatility, DO Home Collection is 1.19 times less risky than HaiXin Foods. It trades about 0.1 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 380.00 in HaiXin Foods Co on September 1, 2024 and sell it today you would earn a total of 81.00 from holding HaiXin Foods Co or generate 21.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Home Collection vs. HaiXin Foods Co
Performance |
| Timeline |
| DO Home Collection |
| HaiXin Foods |
DO Home and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and HaiXin Foods
The main advantage of trading using opposite DO Home and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| DO Home vs. Sinocat Environmental Technology | DO Home vs. Beijing SPC Environment | DO Home vs. Yankershop Food Co | DO Home vs. Anji Foodstuff Co |
| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Shenzhen Hifuture Electric | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Shenyang Huitian Thermal |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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