Correlation Between Hainan Haiqi and China Minsheng
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By analyzing existing cross correlation between Hainan Haiqi Transportation and China Minsheng Banking, you can compare the effects of market volatilities on Hainan Haiqi and China Minsheng 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 Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and China Minsheng.
Diversification Opportunities for Hainan Haiqi and China Minsheng
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking 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 Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and China Minsheng go up and down completely randomly.
Pair Corralation between Hainan Haiqi and China Minsheng
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.59 times more return on investment than China Minsheng. However, Hainan Haiqi is 1.59 times more volatile than China Minsheng Banking. It trades about 0.2 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.1 per unit of risk. If you would invest 1,931 in Hainan Haiqi Transportation on September 4, 2024 and sell it today you would earn a total of 287.00 from holding Hainan Haiqi Transportation or generate 14.86% 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. China Minsheng Banking
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| China Minsheng Banking |
Hainan Haiqi and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and China Minsheng
The main advantage of trading using opposite Hainan Haiqi and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, China Minsheng 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 Minsheng will offset losses from the drop in China Minsheng'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 |
| China Minsheng vs. Zhongtong Guomai Communication | China Minsheng vs. Caihong Display Devices | China Minsheng vs. Everdisplay Optronics Shanghai | China Minsheng vs. Tianjin Hi Tech Development |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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