Correlation Between Aluminum Corp and HaiXin Foods
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By analyzing existing cross correlation between Aluminum Corp of and HaiXin Foods Co, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and HaiXin Foods.
Diversification Opportunities for Aluminum Corp and HaiXin Foods
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and HaiXin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Aluminum Corp 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and HaiXin Foods go up and down completely randomly.
Pair Corralation between Aluminum Corp and HaiXin Foods
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the HaiXin Foods. But the stock apears to be less risky and, when comparing its historical volatility, Aluminum Corp of is 1.51 times less risky than HaiXin Foods. The stock trades about -0.21 of its potential returns per unit of risk. The HaiXin Foods Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 383.00 in HaiXin Foods Co on August 29, 2024 and sell it today you would earn a total of 48.00 from holding HaiXin Foods Co or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. HaiXin Foods Co
Performance |
| Timeline |
| Aluminum Corp |
| HaiXin Foods |
Aluminum Corp and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and HaiXin Foods
The main advantage of trading using opposite Aluminum Corp and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Shandong Gold Mining | Aluminum Corp vs. Rongsheng Petrochemical Co | Aluminum Corp vs. Inner Mongolia BaoTou |
| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China State Construction | HaiXin Foods vs. China Railway 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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