Correlation Between Hainan Haiqi and Shenzhen Hifuture
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Hainan Haiqi and Shenzhen Hifuture 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 Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Shenzhen Hifuture.
Diversification Opportunities for Hainan Haiqi and Shenzhen Hifuture
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hainan and Shenzhen is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Shenzhen Hifuture
Assuming the 90 days trading horizon Hainan Haiqi is expected to generate 45.6 times less return on investment than Shenzhen Hifuture. In addition to that, Hainan Haiqi is 1.06 times more volatile than Shenzhen Hifuture Electric. It trades about 0.0 of its total potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.22 per unit of volatility. If you would invest 230.00 in Shenzhen Hifuture Electric on August 26, 2024 and sell it today you would earn a total of 32.00 from holding Shenzhen Hifuture Electric or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Shenzhen Hifuture |
Hainan Haiqi and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Shenzhen Hifuture
The main advantage of trading using opposite Hainan Haiqi and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Shenzhen Hifuture 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 Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Hainan Haiqi vs. Dongfeng Automobile Co | Hainan Haiqi vs. Sinomach Automobile Co | Hainan Haiqi vs. China Reform Health | Hainan Haiqi vs. Heren Health Co |
| Shenzhen Hifuture vs. Beijing Mainstreets Investment | Shenzhen Hifuture vs. Hainan Haiqi Transportation | Shenzhen Hifuture vs. Dazhong Transportation Group | Shenzhen Hifuture vs. Shuhua Sports 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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