Correlation Between Hainan Haiqi and Kuangda Technology
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Kuangda Technology Group, you can compare the effects of market volatilities on Hainan Haiqi and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Kuangda Technology.
Diversification Opportunities for Hainan Haiqi and Kuangda Technology
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Kuangda is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Kuangda Technology go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Kuangda Technology
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.07 times more return on investment than Kuangda Technology. However, Hainan Haiqi is 1.07 times more volatile than Kuangda Technology Group. It trades about -0.02 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.17 per unit of risk. If you would invest 1,968 in Hainan Haiqi Transportation on August 29, 2024 and sell it today you would lose (52.00) from holding Hainan Haiqi Transportation or give up 2.64% 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. Kuangda Technology Group
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Kuangda Technology |
Hainan Haiqi and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Kuangda Technology
The main advantage of trading using opposite Hainan Haiqi and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology'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 |
| Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Industrial and Commercial | Kuangda Technology vs. Bank of China | Kuangda Technology vs. China Construction Bank |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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