Correlation Between Kailong High and HaiXin Foods
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By analyzing existing cross correlation between Kailong High Technology and HaiXin Foods Co, you can compare the effects of market volatilities on Kailong High 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 Kailong High with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kailong High and HaiXin Foods.
Diversification Opportunities for Kailong High and HaiXin Foods
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kailong and HaiXin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kailong High Technology and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Kailong High 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 Kailong High Technology 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 Kailong High i.e., Kailong High and HaiXin Foods go up and down completely randomly.
Pair Corralation between Kailong High and HaiXin Foods
Assuming the 90 days trading horizon Kailong High Technology is expected to generate 0.91 times more return on investment than HaiXin Foods. However, Kailong High Technology is 1.1 times less risky than HaiXin Foods. It trades about 0.06 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.08 per unit of risk. If you would invest 1,150 in Kailong High Technology on November 1, 2024 and sell it today you would earn a total of 36.00 from holding Kailong High Technology or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kailong High Technology vs. HaiXin Foods Co
Performance |
| Timeline |
| Kailong High Technology |
| HaiXin Foods |
Kailong High and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kailong High and HaiXin Foods
The main advantage of trading using opposite Kailong High and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kailong High 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.| Kailong High vs. Western Metal Materials | Kailong High vs. NBTM New Materials | Kailong High vs. Dongnan Electronics Co | Kailong High vs. Fuzhou Rockchip Electronics |
| HaiXin Foods vs. Guangdong Jingyi Metal | HaiXin Foods vs. Shuhua Sports Co | HaiXin Foods vs. Zhejiang Yongjin Metal | HaiXin Foods vs. Tianshan Aluminum 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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