Correlation Between Dongguan Tarry and Hainan Haiqi
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Dongguan Tarry 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 Dongguan Tarry with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Hainan Haiqi.
Diversification Opportunities for Dongguan Tarry and Hainan Haiqi
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongguan and Hainan is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics 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 Dongguan Tarry 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 Dongguan Tarry Electronics 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 Dongguan Tarry i.e., Dongguan Tarry and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Hainan Haiqi
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to under-perform the Hainan Haiqi. In addition to that, Dongguan Tarry is 1.03 times more volatile than Hainan Haiqi Transportation. It trades about -0.08 of its total potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.04 per unit of volatility. If you would invest 1,951 in Hainan Haiqi Transportation on October 22, 2024 and sell it today you would lose (59.00) from holding Hainan Haiqi Transportation or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Hainan Haiqi Transpo |
Dongguan Tarry and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Hainan Haiqi
The main advantage of trading using opposite Dongguan Tarry and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry 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.| Dongguan Tarry vs. Sino Platinum Metals Co | Dongguan Tarry vs. Shandong Hi Speed RoadBridge | Dongguan Tarry vs. Western Metal Materials | Dongguan Tarry vs. Zhengping RoadBridge Constr |
| Hainan Haiqi vs. Hubei Xingfa Chemicals | Hainan Haiqi vs. Ningbo Kangqiang Electronics | Hainan Haiqi vs. Integrated Electronic Systems | Hainan Haiqi vs. Dongguan Tarry Electronics |
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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