Correlation Between Industrial and Hainan Haiqi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Hainan Haiqi.
Diversification Opportunities for Industrial and Hainan Haiqi
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Hainan is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Industrial and Hainan Haiqi
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.48 times more return on investment than Hainan Haiqi. However, Industrial and Commercial is 2.08 times less risky than Hainan Haiqi. It trades about 0.07 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.02 per unit of risk. If you would invest 598.00 in Industrial and Commercial on October 26, 2024 and sell it today you would earn a total of 68.00 from holding Industrial and Commercial or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Industrial and Commercial |
| Hainan Haiqi Transpo |
Industrial and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Hainan Haiqi
The main advantage of trading using opposite Industrial and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Sino Platinum Metals Co | Industrial vs. Offshore Oil Engineering | Industrial vs. Heilongjiang Transport Development | Industrial vs. Qingdao Haier Biomedical |
| Hainan Haiqi vs. China Mobile Limited | Hainan Haiqi vs. Agricultural Bank of | Hainan Haiqi vs. Industrial and Commercial | Hainan Haiqi vs. China Construction Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |