Correlation Between Hainan Haiqi and Anhui Deli
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Anhui Deli Household, you can compare the effects of market volatilities on Hainan Haiqi and Anhui Deli 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 Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Anhui Deli.
Diversification Opportunities for Hainan Haiqi and Anhui Deli
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Anhui is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household 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 Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Anhui Deli go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Anhui Deli
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 0.88 times more return on investment than Anhui Deli. However, Hainan Haiqi Transportation is 1.14 times less risky than Anhui Deli. It trades about 0.03 of its potential returns per unit of risk. Anhui Deli Household is currently generating about -0.01 per unit of risk. If you would invest 1,917 in Hainan Haiqi Transportation on September 15, 2024 and sell it today you would earn a total of 221.00 from holding Hainan Haiqi Transportation or generate 11.53% 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. Anhui Deli Household
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Anhui Deli Household |
Hainan Haiqi and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Anhui Deli
The main advantage of trading using opposite Hainan Haiqi and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.| Hainan Haiqi vs. Ming Yang Smart | Hainan Haiqi vs. 159681 | Hainan Haiqi vs. 159005 | Hainan Haiqi vs. Loctek Ergonomic Technology |
| Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Construction Bank | Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Bank of China |
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 Stocks Directory module to find actively traded stocks across global markets.
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