Correlation Between Hainan Haiqi and Changzhou Evergreen
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Changzhou Evergreen Technology, you can compare the effects of market volatilities on Hainan Haiqi and Changzhou Evergreen 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 Changzhou Evergreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Changzhou Evergreen.
Diversification Opportunities for Hainan Haiqi and Changzhou Evergreen
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Changzhou is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Changzhou Evergreen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Evergreen 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 Changzhou Evergreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Evergreen has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Changzhou Evergreen go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Changzhou Evergreen
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 0.84 times more return on investment than Changzhou Evergreen. However, Hainan Haiqi Transportation is 1.18 times less risky than Changzhou Evergreen. It trades about 0.01 of its potential returns per unit of risk. Changzhou Evergreen Technology is currently generating about 0.0 per unit of risk. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Changzhou Evergreen Technology
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Changzhou Evergreen |
Hainan Haiqi and Changzhou Evergreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Changzhou Evergreen
The main advantage of trading using opposite Hainan Haiqi and Changzhou Evergreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Changzhou Evergreen 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 Changzhou Evergreen will offset losses from the drop in Changzhou Evergreen's long position.| Hainan Haiqi vs. Zhejiang Yongjin Metal | Hainan Haiqi vs. Shanghai Yanpu Metal | Hainan Haiqi vs. Ye Chiu Metal | Hainan Haiqi vs. Shenzhen Bioeasy Biotechnology |
| Changzhou Evergreen vs. Hunan Investment Group | Changzhou Evergreen vs. Qijing Machinery | Changzhou Evergreen vs. Hongrun Construction Group | Changzhou Evergreen vs. Weichai Heavy Machinery |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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