Correlation Between Hainan Haiqi and Beijing Sanyuan
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Hainan Haiqi and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Beijing Sanyuan.
Diversification Opportunities for Hainan Haiqi and Beijing Sanyuan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Beijing Sanyuan
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the Beijing Sanyuan. In addition to that, Hainan Haiqi is 1.79 times more volatile than Beijing Sanyuan Foods. It trades about -0.02 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about 0.01 per unit of volatility. If you would invest 440.00 in Beijing Sanyuan Foods on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Beijing Sanyuan Foods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Beijing Sanyuan Foods |
Hainan Haiqi and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Beijing Sanyuan
The main advantage of trading using opposite Hainan Haiqi and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Hainan Haiqi vs. PetroChina Co Ltd | Hainan Haiqi vs. China State Construction | Hainan Haiqi vs. China Mobile Limited | Hainan Haiqi vs. Industrial and Commercial |
| Beijing Sanyuan vs. Heilongjiang Transport Development | Beijing Sanyuan vs. Hainan Haiqi Transportation | Beijing Sanyuan vs. Advanced Technology Materials | Beijing Sanyuan vs. GRIPM Advanced Materials |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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