Correlation Between Hainan Haiqi and Shandong Gold
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Shandong Gold Mining, you can compare the effects of market volatilities on Hainan Haiqi and Shandong Gold 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 Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Shandong Gold.
Diversification Opportunities for Hainan Haiqi and Shandong Gold
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hainan and Shandong is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining 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 Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Shandong Gold go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Shandong Gold
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 2.6 times more return on investment than Shandong Gold. However, Hainan Haiqi is 2.6 times more volatile than Shandong Gold Mining. It trades about 0.05 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.03 per unit of risk. If you would invest 2,068 in Hainan Haiqi Transportation on September 13, 2024 and sell it today you would earn a total of 46.00 from holding Hainan Haiqi Transportation or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Shandong Gold Mining
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Shandong Gold Mining |
Hainan Haiqi and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Shandong Gold
The main advantage of trading using opposite Hainan Haiqi and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Hainan Haiqi vs. Ming Yang Smart | Hainan Haiqi vs. 159681 | Hainan Haiqi vs. 159005 | Hainan Haiqi vs. Loctek Ergonomic Technology |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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