Correlation Between Hainan Haiqi and Zhongzhu Medical
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Hainan Haiqi and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Zhongzhu Medical.
Diversification Opportunities for Hainan Haiqi and Zhongzhu Medical
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Zhongzhu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Zhongzhu Medical
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the Zhongzhu Medical. In addition to that, Hainan Haiqi is 1.27 times more volatile than Zhongzhu Medical Holdings. It trades about -0.09 of its total potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.07 per unit of volatility. If you would invest 142.00 in Zhongzhu Medical Holdings on November 6, 2024 and sell it today you would lose (16.00) from holding Zhongzhu Medical Holdings or give up 11.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Zhongzhu Medical Holdings |
Hainan Haiqi and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Zhongzhu Medical
The main advantage of trading using opposite Hainan Haiqi and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Hainan Haiqi vs. Zhejiang Huatong Meat | Hainan Haiqi vs. Shanghai Ziyan Foods | Hainan Haiqi vs. Yan Tai Shuang | Hainan Haiqi vs. Jiajia Food Group |
| Zhongzhu Medical vs. Yili Chuanning Biotechnology | Zhongzhu Medical vs. Anhui Deli Household | Zhongzhu Medical vs. Fujian Wanchen Biotechnology | Zhongzhu Medical vs. Hubei Tech Semiconductors |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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