Correlation Between Changchun BCHT and HaiXin Foods
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and HaiXin Foods Co, you can compare the effects of market volatilities on Changchun BCHT 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 Changchun BCHT with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and HaiXin Foods.
Diversification Opportunities for Changchun BCHT and HaiXin Foods
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Changchun and HaiXin is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Changchun BCHT 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 Changchun BCHT Biotechnology 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 Changchun BCHT i.e., Changchun BCHT and HaiXin Foods go up and down completely randomly.
Pair Corralation between Changchun BCHT and HaiXin Foods
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the HaiXin Foods. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 2.14 times less risky than HaiXin Foods. The stock trades about -0.28 of its potential returns per unit of risk. The HaiXin Foods Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 458.00 in HaiXin Foods Co on October 23, 2024 and sell it today you would lose (33.00) from holding HaiXin Foods Co or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. HaiXin Foods Co
Performance |
| Timeline |
| Changchun BCHT Biote |
| HaiXin Foods |
Changchun BCHT and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and HaiXin Foods
The main advantage of trading using opposite Changchun BCHT and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT 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.| Changchun BCHT vs. Hubei Xingfa Chemicals | Changchun BCHT vs. Ningxia Younglight Chemicals | Changchun BCHT vs. Porton Fine Chemicals | Changchun BCHT vs. Angang Steel Co |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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