Correlation Between Gan Yuan and HaiXin Foods
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By analyzing existing cross correlation between Gan Yuan Foods and HaiXin Foods Co, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and HaiXin Foods.
Diversification Opportunities for Gan Yuan and HaiXin Foods
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and HaiXin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan 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 Gan Yuan 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 Gan Yuan 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 Gan Yuan i.e., Gan Yuan and HaiXin Foods go up and down completely randomly.
Pair Corralation between Gan Yuan and HaiXin Foods
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.92 times more return on investment than HaiXin Foods. However, Gan Yuan Foods is 1.09 times less risky than HaiXin Foods. It trades about 0.02 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.02 per unit of risk. If you would invest 7,210 in Gan Yuan Foods on August 30, 2024 and sell it today you would earn a total of 633.00 from holding Gan Yuan Foods or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. HaiXin Foods Co
Performance |
| Timeline |
| Gan Yuan Foods |
| HaiXin Foods |
Gan Yuan and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and HaiXin Foods
The main advantage of trading using opposite Gan Yuan and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.| Gan Yuan vs. PetroChina Co Ltd | Gan Yuan vs. China Mobile Limited | Gan Yuan vs. Ping An Insurance | Gan Yuan vs. China Petroleum Chemical |
| HaiXin Foods vs. Henan Shuanghui Investment | HaiXin Foods vs. Xiandai Investment Co | HaiXin Foods vs. Jointo Energy Investment | HaiXin Foods vs. Tieling Newcity 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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