Correlation Between Xiamen Jihong and HaiXin Foods
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By analyzing existing cross correlation between Xiamen Jihong Package and HaiXin Foods Co, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and HaiXin Foods.
Diversification Opportunities for Xiamen Jihong and HaiXin Foods
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and HaiXin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and HaiXin Foods go up and down completely randomly.
Pair Corralation between Xiamen Jihong and HaiXin Foods
Assuming the 90 days trading horizon Xiamen Jihong is expected to generate 1.52 times less return on investment than HaiXin Foods. But when comparing it to its historical volatility, Xiamen Jihong Package is 1.02 times less risky than HaiXin Foods. It trades about 0.01 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 531.00 in HaiXin Foods Co on September 12, 2024 and sell it today you would earn a total of 5.00 from holding HaiXin Foods Co or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. HaiXin Foods Co
Performance |
| Timeline |
| Xiamen Jihong Package |
| HaiXin Foods |
Xiamen Jihong and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and HaiXin Foods
The main advantage of trading using opposite Xiamen Jihong and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Zhengzhou Qianweiyangchu Food | Xiamen Jihong vs. Great Sun Foods Co | Xiamen Jihong vs. Shandong Iron and | Xiamen Jihong vs. Beijing Sanyuan Foods |
| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China State Construction | HaiXin Foods vs. China Railway Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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