Correlation Between Hainan Haiqi and Hubei Geoway
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Hubei Geoway Investment, you can compare the effects of market volatilities on Hainan Haiqi and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Hubei Geoway.
Diversification Opportunities for Hainan Haiqi and Hubei Geoway
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Hubei is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Hubei Geoway go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Hubei Geoway
Assuming the 90 days trading horizon Hainan Haiqi is expected to generate 2.35 times less return on investment than Hubei Geoway. But when comparing it to its historical volatility, Hainan Haiqi Transportation is 1.14 times less risky than Hubei Geoway. It trades about 0.0 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Hubei Geoway Investment on November 30, 2024 and sell it today you would lose (1.00) from holding Hubei Geoway Investment or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Hubei Geoway Investment
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Hubei Geoway Investment |
Hainan Haiqi and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Hubei Geoway
The main advantage of trading using opposite Hainan Haiqi and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Hainan Haiqi vs. Hengli Petrochemical Co | Hainan Haiqi vs. Liaoning Dingjide Petrochemical | Hainan Haiqi vs. HanS Laser Tech | Hainan Haiqi vs. Bsm Chemical Co |
| Hubei Geoway vs. Kingclean Electric Co | Hubei Geoway vs. Pengxin International Mining | Hubei Geoway vs. Jiangsu Yanghe Brewery | Hubei Geoway vs. Keda Clean Energy |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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