Correlation Between Hainan Haiqi and Guosheng Financial
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Guosheng Financial Holding, you can compare the effects of market volatilities on Hainan Haiqi and Guosheng Financial 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 Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Guosheng Financial.
Diversification Opportunities for Hainan Haiqi and Guosheng Financial
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Guosheng is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial 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 Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Guosheng Financial go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Guosheng Financial
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 0.9 times more return on investment than Guosheng Financial. However, Hainan Haiqi Transportation is 1.11 times less risky than Guosheng Financial. It trades about 0.17 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.14 per unit of risk. If you would invest 1,931 in Hainan Haiqi Transportation on September 5, 2024 and sell it today you would earn a total of 241.00 from holding Hainan Haiqi Transportation or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Guosheng Financial Holding
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Guosheng Financial |
Hainan Haiqi and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Guosheng Financial
The main advantage of trading using opposite Hainan Haiqi and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| Hainan Haiqi vs. Xiwang Foodstuffs Co | Hainan Haiqi vs. Ningbo Ligong Online | Hainan Haiqi vs. Pengxin International Mining | Hainan Haiqi vs. V V Food |
| Guosheng Financial vs. Xinke Material | Guosheng Financial vs. Fuda Alloy Materials | Guosheng Financial vs. Shenzhen SDG Information | Guosheng Financial vs. Yonyou Auto Information |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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