Correlation Between Hainan Haiqi and China Resources
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By analyzing existing cross correlation between Hainan Haiqi Transportation and China Resources Boya, you can compare the effects of market volatilities on Hainan Haiqi and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and China Resources.
Diversification Opportunities for Hainan Haiqi and China Resources
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hainan and China is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and China Resources go up and down completely randomly.
Pair Corralation between Hainan Haiqi and China Resources
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.25 times more return on investment than China Resources. However, Hainan Haiqi is 1.25 times more volatile than China Resources Boya. It trades about 0.02 of its potential returns per unit of risk. China Resources Boya is currently generating about 0.01 per unit of risk. If you would invest 1,905 in Hainan Haiqi Transportation on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Hainan Haiqi Transportation or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. China Resources Boya
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| China Resources Boya |
Hainan Haiqi and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and China Resources
The main advantage of trading using opposite Hainan Haiqi and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Hainan Haiqi vs. Nanjing Putian Telecommunications | Hainan Haiqi vs. Shenzhen Hifuture Electric | Hainan Haiqi vs. Tianjin Realty Development | Hainan Haiqi vs. Shenyang Huitian Thermal |
| China Resources vs. Zijin Mining Group | China Resources vs. Invengo Information Technology | China Resources vs. Emdoor Information Co | China Resources vs. Hainan Mining Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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