Correlation Between Shanghai Yanpu and HaiXin Foods
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By analyzing existing cross correlation between Shanghai Yanpu Metal and HaiXin Foods Co, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and HaiXin Foods.
Diversification Opportunities for Shanghai Yanpu and HaiXin Foods
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and HaiXin is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Shanghai Yanpu 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 Shanghai Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and HaiXin Foods go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and HaiXin Foods
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.16 times more return on investment than HaiXin Foods. However, Shanghai Yanpu is 1.16 times more volatile than HaiXin Foods Co. It trades about -0.03 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.12 per unit of risk. If you would invest 4,220 in Shanghai Yanpu Metal on December 31, 2024 and sell it today you would lose (70.00) from holding Shanghai Yanpu Metal or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. HaiXin Foods Co
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| HaiXin Foods |
Shanghai Yanpu and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and HaiXin Foods
The main advantage of trading using opposite Shanghai Yanpu and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.| Shanghai Yanpu vs. Allied Machinery Co | Shanghai Yanpu vs. Jilin Jlu Communication | Shanghai Yanpu vs. BTG Hotels Group | Shanghai Yanpu vs. Dingli Communications Corp |
| HaiXin Foods vs. China Everbright Bank | HaiXin Foods vs. Financial Street Holdings | HaiXin Foods vs. Unisplendour Corp | HaiXin Foods vs. Shenwu Energy Saving |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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