Correlation Between Hainan Haiqi and China World
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By analyzing existing cross correlation between Hainan Haiqi Transportation and China World Trade, you can compare the effects of market volatilities on Hainan Haiqi and China World 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 World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and China World.
Diversification Opportunities for Hainan Haiqi and China World
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hainan and China is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and China World go up and down completely randomly.
Pair Corralation between Hainan Haiqi and China World
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the China World. In addition to that, Hainan Haiqi is 1.69 times more volatile than China World Trade. It trades about -0.01 of its total potential returns per unit of risk. China World Trade is currently generating about 0.06 per unit of volatility. If you would invest 1,580 in China World Trade on October 28, 2024 and sell it today you would earn a total of 848.00 from holding China World Trade or generate 53.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. China World Trade
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| China World Trade |
Hainan Haiqi and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and China World
The main advantage of trading using opposite Hainan Haiqi and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, China World 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 World will offset losses from the drop in China World's long position.| Hainan Haiqi vs. Anhui Jianghuai Automobile | Hainan Haiqi vs. Xiangyang Automobile Bearing | Hainan Haiqi vs. Haima Automobile Group | Hainan Haiqi vs. Runjian Communication Co |
| China World vs. Guangdong Jinma Entertainment | China World vs. Hengdian Entertainment Co | China World vs. Zhejiang JIULI Hi tech | China World vs. Beingmate Baby Child |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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