Correlation Between Hainan Haiqi and Huaneng Lancang
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Huaneng Lancang River, you can compare the effects of market volatilities on Hainan Haiqi and Huaneng Lancang 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 Huaneng Lancang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Huaneng Lancang.
Diversification Opportunities for Hainan Haiqi and Huaneng Lancang
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hainan and Huaneng is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Huaneng Lancang River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaneng Lancang River 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 Huaneng Lancang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaneng Lancang River has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Huaneng Lancang go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Huaneng Lancang
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 2.45 times more return on investment than Huaneng Lancang. However, Hainan Haiqi is 2.45 times more volatile than Huaneng Lancang River. It trades about 0.0 of its potential returns per unit of risk. Huaneng Lancang River is currently generating about -0.16 per unit of risk. If you would invest 2,038 in Hainan Haiqi Transportation on September 1, 2024 and sell it today you would lose (22.00) from holding Hainan Haiqi Transportation or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Huaneng Lancang River
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Huaneng Lancang River |
Hainan Haiqi and Huaneng Lancang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Huaneng Lancang
The main advantage of trading using opposite Hainan Haiqi and Huaneng Lancang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Huaneng Lancang 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 Huaneng Lancang will offset losses from the drop in Huaneng Lancang's 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 |
| Huaneng Lancang vs. Ligao Foods CoLtd | Huaneng Lancang vs. China Publishing Media | Huaneng Lancang vs. Dook Media Group | Huaneng Lancang vs. Anji Foodstuff 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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