Correlation Between China Railway and HaiXin Foods
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By analyzing existing cross correlation between China Railway Construction and HaiXin Foods Co, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and HaiXin Foods.
Diversification Opportunities for China Railway and HaiXin Foods
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and HaiXin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and China Railway 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 China Railway Construction 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 China Railway i.e., China Railway and HaiXin Foods go up and down completely randomly.
Pair Corralation between China Railway and HaiXin Foods
Assuming the 90 days trading horizon China Railway Construction is expected to generate 0.75 times more return on investment than HaiXin Foods. However, China Railway Construction is 1.33 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 -0.01 per unit of risk. If you would invest 753.00 in China Railway Construction on October 9, 2024 and sell it today you would earn a total of 113.00 from holding China Railway Construction or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. HaiXin Foods Co
Performance |
| Timeline |
| China Railway Constr |
| HaiXin Foods |
China Railway and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and HaiXin Foods
The main advantage of trading using opposite China Railway and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Agricultural Bank of | China Railway vs. Industrial and Commercial | China Railway vs. Bank of China | China Railway vs. PetroChina Co Ltd |
| HaiXin Foods vs. Industrial and Commercial | HaiXin Foods vs. Agricultural Bank of | HaiXin Foods vs. China Construction Bank | HaiXin Foods vs. Bank of China |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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