Correlation Between Hainan Haiqi and Shenyang Huitian
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Hainan Haiqi and Shenyang Huitian 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 Haiqi with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Shenyang Huitian.
Diversification Opportunities for Hainan Haiqi and Shenyang Huitian
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Shenyang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Hainan Haiqi 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 Haiqi Transportation are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Shenyang Huitian
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.39 times more return on investment than Shenyang Huitian. However, Hainan Haiqi is 1.39 times more volatile than Shenyang Huitian Thermal. It trades about 0.0 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about -0.04 per unit of risk. If you would invest 1,830 in Hainan Haiqi Transportation on November 30, 2024 and sell it today you would lose (15.00) from holding Hainan Haiqi Transportation or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Shenyang Huitian Thermal |
Hainan Haiqi and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Shenyang Huitian
The main advantage of trading using opposite Hainan Haiqi and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Hainan Haiqi vs. Hengli Petrochemical Co | Hainan Haiqi vs. Liaoning Dingjide Petrochemical | Hainan Haiqi vs. HanS Laser Tech | Hainan Haiqi vs. Bsm Chemical Co |
| Shenyang Huitian vs. Zhejiang Yongjin Metal | Shenyang Huitian vs. Tongyu Communication | Shenyang Huitian vs. Aluminum Corp of | Shenyang Huitian vs. Eastern Communications 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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