Correlation Between Hainan Haiqi and Shenzhen Coship
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Hainan Haiqi and Shenzhen Coship 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 Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Shenzhen Coship.
Diversification Opportunities for Hainan Haiqi and Shenzhen Coship
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hainan and Shenzhen is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec 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 Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Shenzhen Coship
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 0.9 times more return on investment than Shenzhen Coship. However, Hainan Haiqi Transportation is 1.11 times less risky than Shenzhen Coship. It trades about -0.09 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about -0.12 per unit of risk. If you would invest 1,897 in Hainan Haiqi Transportation on October 28, 2024 and sell it today you would lose (121.00) from holding Hainan Haiqi Transportation or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Shenzhen Coship Elec |
Hainan Haiqi and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Shenzhen Coship
The main advantage of trading using opposite Hainan Haiqi and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Shenzhen Coship 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 Shenzhen Coship will offset losses from the drop in Shenzhen Coship's long position.| Hainan Haiqi vs. Zhuhai Comleader Information | Hainan Haiqi vs. Guangzhou Ruoyuchen Information | Hainan Haiqi vs. Sublime China Information | Hainan Haiqi vs. East Money Information |
| Shenzhen Coship vs. Zhongyin Babi Food | Shenzhen Coship vs. Hainan Haiqi Transportation | Shenzhen Coship vs. Shenzhen Urban Transport | Shenzhen Coship vs. Dazhong Transportation Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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