Correlation Between Hainan Haiqi and Nanjing Putian
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Hainan Haiqi and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Nanjing Putian.
Diversification Opportunities for Hainan Haiqi and Nanjing Putian
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Nanjing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Nanjing Putian go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Nanjing Putian
Assuming the 90 days trading horizon Hainan Haiqi is expected to generate 8.5 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Hainan Haiqi Transportation is 1.34 times less risky than Nanjing Putian. It trades about 0.0 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Nanjing Putian Telecommunications on November 30, 2024 and sell it today you would earn a total of 4.00 from holding Nanjing Putian Telecommunications or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Nanjing Putian Telec |
Hainan Haiqi and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Nanjing Putian
The main advantage of trading using opposite Hainan Haiqi and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Hainan Haiqi vs. Hengli Petrochemical Co | Hainan Haiqi vs. Liaoning Dingjide Petrochemical | Hainan Haiqi vs. HanS Laser Tech | Hainan Haiqi vs. Bsm Chemical Co |
| Nanjing Putian vs. Xiangyu Medical Co | Nanjing Putian vs. Cofoe Medical Technology | Nanjing Putian vs. Beijing Balance Medical | Nanjing Putian vs. Kontour Medical Technology |
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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