Correlation Between HeBei Jinniu and HaiXin Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between HeBei Jinniu Chemical and HaiXin Foods Co, you can compare the effects of market volatilities on HeBei Jinniu 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 HeBei Jinniu with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and HaiXin Foods.
Diversification Opportunities for HeBei Jinniu and HaiXin Foods
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HeBei and HaiXin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and HeBei Jinniu 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 HeBei Jinniu Chemical 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 HeBei Jinniu i.e., HeBei Jinniu and HaiXin Foods go up and down completely randomly.
Pair Corralation between HeBei Jinniu and HaiXin Foods
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 0.86 times more return on investment than HaiXin Foods. However, HeBei Jinniu Chemical is 1.16 times less risky than HaiXin Foods. It trades about 0.01 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.0 per unit of risk. If you would invest 520.00 in HeBei Jinniu Chemical on September 1, 2024 and sell it today you would lose (12.00) from holding HeBei Jinniu Chemical or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. HaiXin Foods Co
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| HaiXin Foods |
HeBei Jinniu and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and HaiXin Foods
The main advantage of trading using opposite HeBei Jinniu and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu 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.| HeBei Jinniu vs. Shuhua Sports Co | HeBei Jinniu vs. State Grid InformationCommunication | HeBei Jinniu vs. Jonjee Hi tech Industrial | HeBei Jinniu vs. Fujian Newland Computer |
| HaiXin Foods vs. Nanjing Putian Telecommunications | HaiXin Foods vs. Shenzhen Hifuture Electric | HaiXin Foods vs. Tianjin Realty Development | HaiXin Foods vs. Shenyang Huitian Thermal |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |