Correlation Between Anhui Huaheng and HaiXin Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huaheng Biotechnology and HaiXin Foods Co, you can compare the effects of market volatilities on Anhui Huaheng 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 Anhui Huaheng with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and HaiXin Foods.
Diversification Opportunities for Anhui Huaheng and HaiXin Foods
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and HaiXin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng 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 Anhui Huaheng 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 Anhui Huaheng 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 Anhui Huaheng i.e., Anhui Huaheng and HaiXin Foods go up and down completely randomly.
Pair Corralation between Anhui Huaheng and HaiXin Foods
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the HaiXin Foods. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaheng Biotechnology is 1.55 times less risky than HaiXin Foods. The stock trades about -0.22 of its potential returns per unit of risk. The HaiXin Foods Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 412.00 in HaiXin Foods Co on November 7, 2024 and sell it today you would lose (12.00) from holding HaiXin Foods Co or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. HaiXin Foods Co
Performance |
| Timeline |
| Anhui Huaheng Biotec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HaiXin Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Anhui Huaheng and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and HaiXin Foods
The main advantage of trading using opposite Anhui Huaheng and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng 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.The idea behind Anhui Huaheng Biotechnology and HaiXin Foods Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |