Correlation Between Orient Sec and HaiXin Foods
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By analyzing existing cross correlation between Orient Sec Co and HaiXin Foods Co, you can compare the effects of market volatilities on Orient Sec 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 Orient Sec with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orient Sec and HaiXin Foods.
Diversification Opportunities for Orient Sec and HaiXin Foods
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orient and HaiXin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Orient Sec 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 Orient Sec 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 Orient Sec 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 Orient Sec i.e., Orient Sec and HaiXin Foods go up and down completely randomly.
Pair Corralation between Orient Sec and HaiXin Foods
Assuming the 90 days trading horizon Orient Sec is expected to generate 2.3 times less return on investment than HaiXin Foods. But when comparing it to its historical volatility, Orient Sec Co is 1.43 times less risky than HaiXin Foods. It trades about 0.09 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 327.00 in HaiXin Foods Co on September 25, 2024 and sell it today you would earn a total of 131.00 from holding HaiXin Foods Co or generate 40.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Orient Sec Co vs. HaiXin Foods Co
Performance |
Timeline |
Orient Sec |
HaiXin Foods |
Orient Sec and HaiXin Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Orient Sec and HaiXin Foods
The main advantage of trading using opposite Orient Sec and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orient Sec 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.Orient Sec vs. Guangzhou Haige Communications | Orient Sec vs. Jinhui Liquor Co | Orient Sec vs. China National Software | Orient Sec vs. SUNSEA Telecommunications Co |
HaiXin Foods vs. Ming Yang Smart | HaiXin Foods vs. 159681 | HaiXin Foods vs. 159005 | HaiXin Foods vs. Loctek Ergonomic Technology |
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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