Correlation Between Juewei Food and HaiXin Foods
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By analyzing existing cross correlation between Juewei Food Co and HaiXin Foods Co, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and HaiXin Foods.
Diversification Opportunities for Juewei Food and HaiXin Foods
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Juewei and HaiXin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Juewei Food 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 Juewei Food Co 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 Juewei Food i.e., Juewei Food and HaiXin Foods go up and down completely randomly.
Pair Corralation between Juewei Food and HaiXin Foods
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the HaiXin Foods. In addition to that, Juewei Food is 1.0 times more volatile than HaiXin Foods Co. It trades about -0.07 of its total potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.02 per unit of volatility. If you would invest 679.00 in HaiXin Foods Co on September 3, 2024 and sell it today you would lose (218.00) from holding HaiXin Foods Co or give up 32.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. HaiXin Foods Co
Performance |
| Timeline |
| Juewei Food |
| HaiXin Foods |
Juewei Food and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and HaiXin Foods
The main advantage of trading using opposite Juewei Food and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.| Juewei Food vs. Beijing Wantai Biological | Juewei Food vs. Aluminum Corp of | Juewei Food vs. COL Digital Publishing | Juewei Food vs. Shaanxi Meineng Clean |
| HaiXin Foods vs. Beijing Wantai Biological | HaiXin Foods vs. Aluminum Corp of | HaiXin Foods vs. COL Digital Publishing | HaiXin Foods vs. Shaanxi Meineng Clean |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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