Correlation Between Xinjiang Baodi and HaiXin Foods
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By analyzing existing cross correlation between Xinjiang Baodi Mining and HaiXin Foods Co, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and HaiXin Foods.
Diversification Opportunities for Xinjiang Baodi and HaiXin Foods
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and HaiXin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and HaiXin Foods go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and HaiXin Foods
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.73 times more return on investment than HaiXin Foods. However, Xinjiang Baodi Mining is 1.37 times less risky than HaiXin Foods. It trades about 0.02 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.02 per unit of risk. If you would invest 643.00 in Xinjiang Baodi Mining on October 14, 2024 and sell it today you would earn a total of 28.00 from holding Xinjiang Baodi Mining or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. HaiXin Foods Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| HaiXin Foods |
Xinjiang Baodi and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and HaiXin Foods
The main advantage of trading using opposite Xinjiang Baodi and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Jinhe Biotechnology Co | Xinjiang Baodi vs. Fibocom Wireless | Xinjiang Baodi vs. Guangzhou Haige Communications | Xinjiang Baodi vs. Guangzhou Zhujiang Brewery |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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