Correlation Between HaiXin Foods and Allwin Telecommunicatio

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Can any of the company-specific risk be diversified away by investing in both HaiXin Foods and Allwin Telecommunicatio 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 HaiXin Foods and Allwin Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HaiXin Foods Co and Allwin Telecommunication Co, you can compare the effects of market volatilities on HaiXin Foods and Allwin Telecommunicatio 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 HaiXin Foods with a short position of Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Allwin Telecommunicatio.

Diversification Opportunities for HaiXin Foods and Allwin Telecommunicatio

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between HaiXin and Allwin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio and HaiXin Foods 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 HaiXin Foods Co are associated (or correlated) with Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Allwin Telecommunicatio go up and down completely randomly.

Pair Corralation between HaiXin Foods and Allwin Telecommunicatio

Assuming the 90 days trading horizon HaiXin Foods Co is expected to generate 1.14 times more return on investment than Allwin Telecommunicatio. However, HaiXin Foods is 1.14 times more volatile than Allwin Telecommunication Co. It trades about 0.34 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.2 per unit of risk. If you would invest  430.00  in HaiXin Foods Co on September 3, 2025 and sell it today you would earn a total of  446.00  from holding HaiXin Foods Co or generate 103.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

HaiXin Foods Co  vs.  Allwin Telecommunication Co

 Performance 
       Timeline  
HaiXin Foods 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in HaiXin Foods Co are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, HaiXin Foods sustained solid returns over the last few months and may actually be approaching a breakup point.
Allwin Telecommunicatio 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Allwin Telecommunication Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

HaiXin Foods and Allwin Telecommunicatio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HaiXin Foods and Allwin Telecommunicatio

The main advantage of trading using opposite HaiXin Foods and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.
The idea behind HaiXin Foods Co and Allwin Telecommunication 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.
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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