Correlation Between Hainan Haiqi and Chengdu Bright
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Chengdu Bright Eye, you can compare the effects of market volatilities on Hainan Haiqi and Chengdu Bright 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 Chengdu Bright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Chengdu Bright.
Diversification Opportunities for Hainan Haiqi and Chengdu Bright
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Chengdu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Chengdu Bright Eye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Bright Eye 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 Chengdu Bright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Bright Eye has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Chengdu Bright go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Chengdu Bright
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the Chengdu Bright. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Haiqi Transportation is 1.28 times less risky than Chengdu Bright. The stock trades about -0.01 of its potential returns per unit of risk. The Chengdu Bright Eye is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,511 in Chengdu Bright Eye on September 4, 2024 and sell it today you would lose (618.00) from holding Chengdu Bright Eye or give up 9.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Chengdu Bright Eye
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Chengdu Bright Eye |
Hainan Haiqi and Chengdu Bright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Chengdu Bright
The main advantage of trading using opposite Hainan Haiqi and Chengdu Bright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Chengdu Bright 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 Chengdu Bright will offset losses from the drop in Chengdu Bright's long position.| Hainan Haiqi vs. Bank of China | Hainan Haiqi vs. Kweichow Moutai Co | Hainan Haiqi vs. PetroChina Co Ltd | Hainan Haiqi vs. Bank of Communications |
| Chengdu Bright vs. BeiGene | Chengdu Bright vs. Kweichow Moutai Co | Chengdu Bright vs. Beijing Roborock Technology | Chengdu Bright vs. G bits Network 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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