Correlation Between Ningbo Boway and HaiXin Foods
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By analyzing existing cross correlation between Ningbo Boway Alloy and HaiXin Foods Co, you can compare the effects of market volatilities on Ningbo Boway 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 Ningbo Boway with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Boway and HaiXin Foods.
Diversification Opportunities for Ningbo Boway and HaiXin Foods
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and HaiXin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Boway Alloy and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Ningbo Boway 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 Ningbo Boway Alloy 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 Ningbo Boway i.e., Ningbo Boway and HaiXin Foods go up and down completely randomly.
Pair Corralation between Ningbo Boway and HaiXin Foods
Assuming the 90 days trading horizon Ningbo Boway is expected to generate 1.69 times less return on investment than HaiXin Foods. But when comparing it to its historical volatility, Ningbo Boway Alloy is 1.62 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 0.07 of returns per unit of risk over similar time horizon. If you would invest 403.00 in HaiXin Foods Co on October 18, 2024 and sell it today you would earn a total of 37.00 from holding HaiXin Foods Co or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Boway Alloy vs. HaiXin Foods Co
Performance |
| Timeline |
| Ningbo Boway Alloy |
| HaiXin Foods |
Ningbo Boway and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Boway and HaiXin Foods
The main advantage of trading using opposite Ningbo Boway and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Boway 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.| Ningbo Boway vs. Markor International Home | Ningbo Boway vs. Hainan Mining Co | Ningbo Boway vs. AUPU Home Style | Ningbo Boway vs. North Copper Shanxi |
| HaiXin Foods vs. Ping An Insurance | HaiXin Foods vs. Shanghai Yanpu Metal | HaiXin Foods vs. Western Metal Materials | HaiXin Foods vs. Chengtun Mining 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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