Correlation Between Tianshui Huatian and Hainan Haiqi
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By analyzing existing cross correlation between Tianshui Huatian Technology and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Tianshui Huatian and Hainan Haiqi 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 Tianshui Huatian with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Hainan Haiqi.
Diversification Opportunities for Tianshui Huatian and Hainan Haiqi
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianshui and Hainan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo and Tianshui Huatian 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 Tianshui Huatian Technology are associated (or correlated) with Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Hainan Haiqi
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.94 times more return on investment than Hainan Haiqi. However, Tianshui Huatian Technology is 1.06 times less risky than Hainan Haiqi. It trades about 0.05 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.02 per unit of risk. If you would invest 920.00 in Tianshui Huatian Technology on September 1, 2024 and sell it today you would earn a total of 264.00 from holding Tianshui Huatian Technology or generate 28.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianshui Huatian Technology vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Tianshui Huatian Tec |
| Hainan Haiqi Transpo |
Tianshui Huatian and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianshui Huatian and Hainan Haiqi
The main advantage of trading using opposite Tianshui Huatian and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Tianshui Huatian vs. Industrial and Commercial | Tianshui Huatian vs. Kweichow Moutai Co | Tianshui Huatian vs. Agricultural Bank of | Tianshui Huatian vs. China Mobile Limited |
| Hainan Haiqi vs. Nanjing Putian Telecommunications | Hainan Haiqi vs. Shenzhen Hifuture Electric | Hainan Haiqi vs. Tianjin Realty Development | Hainan Haiqi vs. Shenyang Huitian Thermal |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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