Correlation Between Fujian Longzhou and Hainan Haiqi
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Hainan Haiqi.
Diversification Opportunities for Fujian Longzhou and Hainan Haiqi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Hainan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation 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 Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Hainan Haiqi
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.33 times more return on investment than Hainan Haiqi. However, Fujian Longzhou is 1.33 times more volatile than Hainan Haiqi Transportation. It trades about 0.34 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.17 per unit of risk. If you would invest 427.00 in Fujian Longzhou Transportation on September 5, 2024 and sell it today you would earn a total of 164.00 from holding Fujian Longzhou Transportation or generate 38.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Hainan Haiqi Transpo |
Fujian Longzhou and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Hainan Haiqi
The main advantage of trading using opposite Fujian Longzhou and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Yunnan Jianzhijia Health Chain | Fujian Longzhou vs. Lotus Health Group | Fujian Longzhou vs. Everjoy Health Group | Fujian Longzhou vs. Shanghai Rongtai Health |
| Hainan Haiqi vs. Xiwang Foodstuffs Co | Hainan Haiqi vs. Ningbo Ligong Online | Hainan Haiqi vs. Pengxin International Mining | Hainan Haiqi vs. V V Food |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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