Correlation Between Tianjin Capital and Hainan Haiqi
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By analyzing existing cross correlation between Tianjin Capital Environmental and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Tianjin Capital 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 Tianjin Capital with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Hainan Haiqi.
Diversification Opportunities for Tianjin Capital and Hainan Haiqi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Hainan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental 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 Tianjin Capital 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 Tianjin Capital Environmental 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 Tianjin Capital i.e., Tianjin Capital and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Tianjin Capital and Hainan Haiqi
Assuming the 90 days trading horizon Tianjin Capital is expected to generate 1.22 times less return on investment than Hainan Haiqi. But when comparing it to its historical volatility, Tianjin Capital Environmental is 1.74 times less risky than Hainan Haiqi. It trades about 0.02 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,093 in Hainan Haiqi Transportation on August 31, 2024 and sell it today you would lose (77.00) from holding Hainan Haiqi Transportation or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Tianjin Capital Envi |
| Hainan Haiqi Transpo |
Tianjin Capital and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Hainan Haiqi
The main advantage of trading using opposite Tianjin Capital and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital 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.| Tianjin Capital vs. Cultural Investment Holdings | Tianjin Capital vs. Gome Telecom Equipment | Tianjin Capital vs. Bus Online Co | Tianjin Capital vs. Holitech Technology Co |
| Hainan Haiqi vs. Zhejiang Yongjin Metal | Hainan Haiqi vs. Shanghai Yanpu Metal | Hainan Haiqi vs. Ye Chiu Metal | Hainan Haiqi vs. Shenzhen Bioeasy Biotechnology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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