Correlation Between Hubei Xingfa and Hainan Haiqi
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Hubei Xingfa 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 Hubei Xingfa with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Hainan Haiqi.
Diversification Opportunities for Hubei Xingfa and Hainan Haiqi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and Hainan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals 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 Hubei Xingfa 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 Hubei Xingfa Chemicals 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 Hubei Xingfa i.e., Hubei Xingfa and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Hainan Haiqi
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to generate 0.62 times more return on investment than Hainan Haiqi. However, Hubei Xingfa Chemicals is 1.62 times less risky than Hainan Haiqi. It trades about 0.09 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.0 per unit of risk. If you would invest 2,131 in Hubei Xingfa Chemicals on November 3, 2024 and sell it today you would earn a total of 56.00 from holding Hubei Xingfa Chemicals or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Hainan Haiqi Transpo |
Hubei Xingfa and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Hainan Haiqi
The main advantage of trading using opposite Hubei Xingfa and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa 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.| Hubei Xingfa vs. Jiangsu Financial Leasing | Hubei Xingfa vs. Qilu Bank Co | Hubei Xingfa vs. Unisplendour Corp | Hubei Xingfa vs. Anhui Shiny Electronic |
| Hainan Haiqi vs. Bank of Communications | Hainan Haiqi vs. ROPEOK Technology Group | Hainan Haiqi vs. Tongyu Communication | Hainan Haiqi vs. Bangyan Technology Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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