Correlation Between Guilin Seamild and HaiXin Foods
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By analyzing existing cross correlation between Guilin Seamild Foods and HaiXin Foods Co, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and HaiXin Foods.
Diversification Opportunities for Guilin Seamild and HaiXin Foods
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guilin and HaiXin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and HaiXin Foods go up and down completely randomly.
Pair Corralation between Guilin Seamild and HaiXin Foods
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.75 times more return on investment than HaiXin Foods. However, Guilin Seamild Foods is 1.33 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 -0.07 per unit of risk. If you would invest 1,562 in Guilin Seamild Foods on October 23, 2024 and sell it today you would earn a total of 78.00 from holding Guilin Seamild Foods or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. HaiXin Foods Co
Performance |
| Timeline |
| Guilin Seamild Foods |
| HaiXin Foods |
Guilin Seamild and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and HaiXin Foods
The main advantage of trading using opposite Guilin Seamild and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Cambricon Technologies Corp | Guilin Seamild vs. SGSG Sciencetechnology Co | Guilin Seamild vs. Loongson Technology Corp | Guilin Seamild vs. Jiangsu Flowers King |
| HaiXin Foods vs. Jointo Energy Investment | HaiXin Foods vs. Fiberhome Telecommunication Technologies | HaiXin Foods vs. Beijing Mainstreets Investment | HaiXin Foods vs. Jiangsu Yueda Investment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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