Correlation Between AVCON Information and HaiXin Foods
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By analyzing existing cross correlation between AVCON Information Tech and HaiXin Foods Co, you can compare the effects of market volatilities on AVCON Information 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 AVCON Information with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and HaiXin Foods.
Diversification Opportunities for AVCON Information and HaiXin Foods
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVCON and HaiXin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and AVCON Information 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 AVCON Information Tech 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 AVCON Information i.e., AVCON Information and HaiXin Foods go up and down completely randomly.
Pair Corralation between AVCON Information and HaiXin Foods
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 0.86 times more return on investment than HaiXin Foods. However, AVCON Information Tech is 1.16 times less risky than HaiXin Foods. It trades about -0.19 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.3 per unit of risk. If you would invest 465.00 in AVCON Information Tech on October 18, 2024 and sell it today you would lose (79.00) from holding AVCON Information Tech or give up 16.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. HaiXin Foods Co
Performance |
| Timeline |
| AVCON Information Tech |
| HaiXin Foods |
AVCON Information and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and HaiXin Foods
The main advantage of trading using opposite AVCON Information and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information 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.| AVCON Information vs. Sportsoul Co Ltd | AVCON Information vs. Heilongjiang Publishing Media | AVCON Information vs. Duzhe Publishing Media | AVCON Information vs. Shuhua Sports Co |
| HaiXin Foods vs. Harbin Air Conditioning | HaiXin Foods vs. Chengdu Xingrong Investment | HaiXin Foods vs. Jiangsu Yueda Investment | HaiXin Foods vs. Fuzhou Rockchip Electronics |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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