Correlation Between Hainan Haiqi and Topsec Technologies
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Topsec Technologies Group, you can compare the effects of market volatilities on Hainan Haiqi and Topsec Technologies 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 Topsec Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Topsec Technologies.
Diversification Opportunities for Hainan Haiqi and Topsec Technologies
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Topsec is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Topsec Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topsec Technologies 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 Topsec Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topsec Technologies has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Topsec Technologies go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Topsec Technologies
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.21 times more return on investment than Topsec Technologies. However, Hainan Haiqi is 1.21 times more volatile than Topsec Technologies Group. It trades about 0.12 of its potential returns per unit of risk. Topsec Technologies Group is currently generating about 0.03 per unit of risk. If you would invest 1,990 in Hainan Haiqi Transportation on September 15, 2024 and sell it today you would earn a total of 148.00 from holding Hainan Haiqi Transportation or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Topsec Technologies Group
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Topsec Technologies |
Hainan Haiqi and Topsec Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Topsec Technologies
The main advantage of trading using opposite Hainan Haiqi and Topsec Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Topsec Technologies 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 Topsec Technologies will offset losses from the drop in Topsec Technologies' long position.| Hainan Haiqi vs. Ming Yang Smart | Hainan Haiqi vs. 159681 | Hainan Haiqi vs. 159005 | Hainan Haiqi vs. Loctek Ergonomic Technology |
| Topsec Technologies vs. Touchstone International Medical | Topsec Technologies vs. Winner Medical Co | Topsec Technologies vs. Hainan Haiqi Transportation | Topsec Technologies vs. Xian International Medical |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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