Correlation Between Hainan HNA and Suzhou Douson
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By analyzing existing cross correlation between Hainan HNA Infrastructure and Suzhou Douson Drilling, you can compare the effects of market volatilities on Hainan HNA and Suzhou Douson 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 Hainan HNA with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan HNA and Suzhou Douson.
Diversification Opportunities for Hainan HNA and Suzhou Douson
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hainan and Suzhou is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hainan HNA Infrastructure and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling and Hainan HNA 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 Hainan HNA Infrastructure are associated (or correlated) with Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Hainan HNA i.e., Hainan HNA and Suzhou Douson go up and down completely randomly.
Pair Corralation between Hainan HNA and Suzhou Douson
Assuming the 90 days trading horizon Hainan HNA Infrastructure is expected to generate 0.58 times more return on investment than Suzhou Douson. However, Hainan HNA Infrastructure is 1.73 times less risky than Suzhou Douson. It trades about -0.09 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about -0.06 per unit of risk. If you would invest 382.00 in Hainan HNA Infrastructure on October 29, 2024 and sell it today you would lose (15.00) from holding Hainan HNA Infrastructure or give up 3.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hainan HNA Infrastructure vs. Suzhou Douson Drilling
Performance |
Timeline |
Hainan HNA Infrastructure |
Suzhou Douson Drilling |
Hainan HNA and Suzhou Douson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hainan HNA and Suzhou Douson
The main advantage of trading using opposite Hainan HNA and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan HNA position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.Hainan HNA vs. City Development Environment | Hainan HNA vs. Baoshan Iron Steel | Hainan HNA vs. Aluminum Corp of | Hainan HNA vs. Anhui Fuhuang Steel |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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