Correlation Between Hangzhou Weiguang and HaiXin Foods
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and HaiXin Foods Co, you can compare the effects of market volatilities on Hangzhou Weiguang 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 Hangzhou Weiguang with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and HaiXin Foods.
Diversification Opportunities for Hangzhou Weiguang and HaiXin Foods
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and HaiXin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Hangzhou Weiguang 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 Hangzhou Weiguang Electronic 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 Hangzhou Weiguang i.e., Hangzhou Weiguang and HaiXin Foods go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and HaiXin Foods
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to under-perform the HaiXin Foods. But the stock apears to be less risky and, when comparing its historical volatility, Hangzhou Weiguang Electronic is 3.34 times less risky than HaiXin Foods. The stock trades about -0.26 of its potential returns per unit of risk. The HaiXin Foods Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 479.00 in HaiXin Foods Co on October 7, 2024 and sell it today you would lose (39.00) from holding HaiXin Foods Co or give up 8.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. HaiXin Foods Co
Performance |
| Timeline |
| Hangzhou Weiguang |
| HaiXin Foods |
Hangzhou Weiguang and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and HaiXin Foods
The main advantage of trading using opposite Hangzhou Weiguang and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang 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.| Hangzhou Weiguang vs. Shenzhen AV Display Co | Hangzhou Weiguang vs. Everdisplay Optronics Shanghai | Hangzhou Weiguang vs. Xiamen Goldenhome Co | Hangzhou Weiguang vs. AUPU Home Style |
| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China Railway Construction | HaiXin Foods 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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