Correlation Between Hainan Haiqi and Poly Real
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Poly Real Estate, you can compare the effects of market volatilities on Hainan Haiqi and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Poly Real.
Diversification Opportunities for Hainan Haiqi and Poly Real
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Poly is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Poly Real go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Poly Real
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.04 times more return on investment than Poly Real. However, Hainan Haiqi is 1.04 times more volatile than Poly Real Estate. It trades about 0.05 of its potential returns per unit of risk. Poly Real Estate is currently generating about 0.02 per unit of risk. If you would invest 1,583 in Hainan Haiqi Transportation on August 28, 2024 and sell it today you would earn a total of 357.00 from holding Hainan Haiqi Transportation or generate 22.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Poly Real Estate
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Poly Real Estate |
Hainan Haiqi and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Poly Real
The main advantage of trading using opposite Hainan Haiqi and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Hainan Haiqi vs. Cambricon Technologies Corp | Hainan Haiqi vs. Loongson Technology Corp | Hainan Haiqi vs. Chongqing Road Bridge | Hainan Haiqi vs. Shenzhen Fortune Trend |
| Poly Real vs. Hangzhou Gaoxin Rubber | Poly Real vs. Humanwell Healthcare Group | Poly Real vs. Renxin New Material | Poly Real vs. Suzhou Xingye Material |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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