Correlation Between Hainan Haiqi and Tianshui Huatian
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Tianshui Huatian Technology, you can compare the effects of market volatilities on Hainan Haiqi and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Tianshui Huatian.
Diversification Opportunities for Hainan Haiqi and Tianshui Huatian
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Tianshui is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Tianshui Huatian
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the Tianshui Huatian. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Haiqi Transportation is 1.5 times less risky than Tianshui Huatian. The stock trades about -0.02 of its potential returns per unit of risk. The Tianshui Huatian Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,174 in Tianshui Huatian Technology on August 29, 2024 and sell it today you would lose (13.00) from holding Tianshui Huatian Technology or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Tianshui Huatian Technology
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Tianshui Huatian Tec |
Hainan Haiqi and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Tianshui Huatian
The main advantage of trading using opposite Hainan Haiqi and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| Hainan Haiqi vs. PetroChina Co Ltd | Hainan Haiqi vs. China State Construction | Hainan Haiqi vs. China Mobile Limited | Hainan Haiqi vs. Industrial and Commercial |
| Tianshui Huatian vs. Harbin Hatou Investment | Tianshui Huatian vs. China Railway Construction | Tianshui Huatian vs. Spring Airlines Co | Tianshui Huatian vs. Jiangsu Yueda Investment |
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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