Correlation Between Hainan Haiqi and GRG Banking
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By analyzing existing cross correlation between Hainan Haiqi Transportation and GRG Banking Equipment, you can compare the effects of market volatilities on Hainan Haiqi and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and GRG Banking.
Diversification Opportunities for Hainan Haiqi and GRG Banking
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and GRG is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and GRG Banking go up and down completely randomly.
Pair Corralation between Hainan Haiqi and GRG Banking
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.65 times more return on investment than GRG Banking. However, Hainan Haiqi is 1.65 times more volatile than GRG Banking Equipment. It trades about -0.09 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.19 per unit of risk. If you would invest 2,016 in Hainan Haiqi Transportation on October 30, 2024 and sell it today you would lose (259.00) from holding Hainan Haiqi Transportation or give up 12.85% 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. GRG Banking Equipment
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| GRG Banking Equipment |
Hainan Haiqi and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and GRG Banking
The main advantage of trading using opposite Hainan Haiqi and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Hainan Haiqi vs. Xinjiang Baodi Mining | Hainan Haiqi vs. Ningbo Bohui Chemical | Hainan Haiqi vs. Easyhome New Retail | Hainan Haiqi vs. China World Trade |
| GRG Banking vs. DO Home Collection | GRG Banking vs. Vohringer Home Technology | GRG Banking vs. Nanjing Putian Telecommunications | GRG Banking vs. Fiberhome Telecommunication Technologies |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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