Correlation Between Chengtun Mining and HaiXin Foods
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By analyzing existing cross correlation between Chengtun Mining Group and HaiXin Foods Co, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and HaiXin Foods.
Diversification Opportunities for Chengtun Mining and HaiXin Foods
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengtun and HaiXin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and HaiXin Foods go up and down completely randomly.
Pair Corralation between Chengtun Mining and HaiXin Foods
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the HaiXin Foods. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 1.98 times less risky than HaiXin Foods. The stock trades about -0.04 of its potential returns per unit of risk. The HaiXin Foods Co is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 431.00 in HaiXin Foods Co on September 13, 2024 and sell it today you would earn a total of 159.00 from holding HaiXin Foods Co or generate 36.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. HaiXin Foods Co
Performance |
| Timeline |
| Chengtun Mining Group |
| HaiXin Foods |
Chengtun Mining and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and HaiXin Foods
The main advantage of trading using opposite Chengtun Mining and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Bengang Steel Plates | Chengtun Mining vs. Shenzhen MYS Environmental | Chengtun Mining vs. Central Plains Environment | Chengtun Mining vs. Jiangsu Yanghe Brewery |
| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Kangyue Technology Co | HaiXin Foods vs. Shenzhen Hifuture Electric |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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