Correlation Between Hainan Haiqi and Jiangyin Jianghua
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Hainan Haiqi and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Jiangyin Jianghua.
Diversification Opportunities for Hainan Haiqi and Jiangyin Jianghua
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Jiangyin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Jiangyin Jianghua
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 1.26 times more return on investment than Jiangyin Jianghua. However, Hainan Haiqi is 1.26 times more volatile than Jiangyin Jianghua Microelectronics. It trades about -0.07 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about -0.15 per unit of risk. If you would invest 1,901 in Hainan Haiqi Transportation on October 25, 2024 and sell it today you would lose (97.00) from holding Hainan Haiqi Transportation or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Jiangyin Jianghua |
Hainan Haiqi and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Jiangyin Jianghua
The main advantage of trading using opposite Hainan Haiqi and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Hainan Haiqi vs. Kweichow Moutai Co | Hainan Haiqi vs. Contemporary Amperex Technology | Hainan Haiqi vs. Beijing Roborock Technology | Hainan Haiqi vs. BYD Co Ltd |
| Jiangyin Jianghua vs. Kweichow Moutai Co | Jiangyin Jianghua vs. NAURA Technology Group | Jiangyin Jianghua vs. APT Medical | Jiangyin Jianghua vs. BYD Co Ltd |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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