Correlation Between Xinhua Winshare and HF FOODS
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare and HF FOODS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xinhua Winshare and HF FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and HF FOODS GRP, you can compare the effects of market volatilities on Xinhua Winshare and HF 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 Xinhua Winshare with a short position of HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and HF FOODS.
Diversification Opportunities for Xinhua Winshare and HF FOODS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinhua and 3GX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and HF FOODS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF FOODS GRP and Xinhua Winshare 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 Xinhua Winshare Publishing are associated (or correlated) with HF FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF FOODS GRP has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and HF FOODS go up and down completely randomly.
Pair Corralation between Xinhua Winshare and HF FOODS
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 0.55 times more return on investment than HF FOODS. However, Xinhua Winshare Publishing is 1.81 times less risky than HF FOODS. It trades about 0.09 of its potential returns per unit of risk. HF FOODS GRP is currently generating about 0.03 per unit of risk. If you would invest 90.00 in Xinhua Winshare Publishing on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Xinhua Winshare Publishing or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. HF FOODS GRP
Performance |
| Timeline |
| Xinhua Winshare Publ |
| HF FOODS GRP |
Xinhua Winshare and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and HF FOODS
The main advantage of trading using opposite Xinhua Winshare and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, HF 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 HF FOODS will offset losses from the drop in HF FOODS's long position.| Xinhua Winshare vs. Superior Plus Corp | Xinhua Winshare vs. NMI Holdings | Xinhua Winshare vs. Origin Agritech | Xinhua Winshare vs. SIVERS SEMICONDUCTORS AB |
| HF FOODS vs. SHIP HEALTHCARE HLDGINC | HF FOODS vs. EEDUCATION ALBERT AB | HF FOODS vs. DEVRY EDUCATION GRP | HF FOODS vs. Grand Canyon Education |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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