Correlation Between Sichuan Tianwei and HaiXin Foods
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By analyzing existing cross correlation between Sichuan Tianwei Electronic and HaiXin Foods Co, you can compare the effects of market volatilities on Sichuan Tianwei 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 Sichuan Tianwei with a short position of HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Tianwei and HaiXin Foods.
Diversification Opportunities for Sichuan Tianwei and HaiXin Foods
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sichuan and HaiXin is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Tianwei Electronic and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods and Sichuan Tianwei 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 Sichuan Tianwei Electronic 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 Sichuan Tianwei i.e., Sichuan Tianwei and HaiXin Foods go up and down completely randomly.
Pair Corralation between Sichuan Tianwei and HaiXin Foods
Assuming the 90 days trading horizon Sichuan Tianwei Electronic is expected to under-perform the HaiXin Foods. In addition to that, Sichuan Tianwei is 1.26 times more volatile than HaiXin Foods Co. It trades about -0.02 of its total potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.01 per unit of volatility. If you would invest 610.00 in HaiXin Foods Co on October 24, 2024 and sell it today you would lose (187.00) from holding HaiXin Foods Co or give up 30.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sichuan Tianwei Electronic vs. HaiXin Foods Co
Performance |
Timeline |
Sichuan Tianwei Elec |
HaiXin Foods |
Sichuan Tianwei and HaiXin Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sichuan Tianwei and HaiXin Foods
The main advantage of trading using opposite Sichuan Tianwei and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Tianwei 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.Sichuan Tianwei vs. BeiGene | Sichuan Tianwei vs. Kweichow Moutai Co | Sichuan Tianwei vs. Beijing Roborock Technology | Sichuan Tianwei vs. G bits Network Technology |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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