Correlation Between Weihai Honglin and HaiXin Foods
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By analyzing existing cross correlation between Weihai Honglin Electronic and HaiXin Foods Co, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and HaiXin Foods.
Diversification Opportunities for Weihai Honglin and HaiXin Foods
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Weihai and HaiXin is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and HaiXin Foods go up and down completely randomly.
Pair Corralation between Weihai Honglin and HaiXin Foods
Assuming the 90 days trading horizon Weihai Honglin is expected to generate 1.15 times less return on investment than HaiXin Foods. But when comparing it to its historical volatility, Weihai Honglin Electronic is 1.65 times less risky than HaiXin Foods. It trades about 0.09 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 356.00 in HaiXin Foods Co on October 14, 2024 and sell it today you would earn a total of 49.00 from holding HaiXin Foods Co or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. HaiXin Foods Co
Performance |
| Timeline |
| Weihai Honglin Electronic |
| HaiXin Foods |
Weihai Honglin and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and HaiXin Foods
The main advantage of trading using opposite Weihai Honglin and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. UE Furniture Co | Weihai Honglin vs. CITIC Metal Co | Weihai Honglin vs. Shandong Homey Aquatic | Weihai Honglin vs. Zhejiang Yongjin Metal |
| HaiXin Foods vs. Weihai Honglin Electronic | HaiXin Foods vs. Zhengzhou Coal Mining | HaiXin Foods vs. Beijing YanDong MicroElectronic | HaiXin Foods vs. TongFu Microelectronics Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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