Correlation Between Zhongshan Broad and Hainan Haiqi
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By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Zhongshan Broad 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 Zhongshan Broad with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad and Hainan Haiqi.
Diversification Opportunities for Zhongshan Broad and Hainan Haiqi
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongshan and Hainan is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor 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 Zhongshan Broad 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 Zhongshan Broad Ocean Motor 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 Zhongshan Broad i.e., Zhongshan Broad and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Zhongshan Broad and Hainan Haiqi
Assuming the 90 days trading horizon Zhongshan Broad Ocean Motor is expected to generate 1.02 times more return on investment than Hainan Haiqi. However, Zhongshan Broad is 1.02 times more volatile than Hainan Haiqi Transportation. It trades about -0.04 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.09 per unit of risk. If you would invest 606.00 in Zhongshan Broad Ocean Motor on October 28, 2024 and sell it today you would lose (19.00) from holding Zhongshan Broad Ocean Motor or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| Hainan Haiqi Transpo |
Zhongshan Broad and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad and Hainan Haiqi
The main advantage of trading using opposite Zhongshan Broad and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad 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.| Zhongshan Broad vs. Jointo Energy Investment | Zhongshan Broad vs. Ningbo Jintian Copper | Zhongshan Broad vs. Hunan Investment Group | Zhongshan Broad vs. Tieling Newcity Investment |
| Hainan Haiqi vs. Zhuhai Comleader Information | Hainan Haiqi vs. Guangzhou Ruoyuchen Information | Hainan Haiqi vs. Sublime China Information | Hainan Haiqi vs. East Money Information |
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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