Correlation Between Hainan Haiqi and Hygon Information
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Hygon Information Technology, you can compare the effects of market volatilities on Hainan Haiqi and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Hygon Information.
Diversification Opportunities for Hainan Haiqi and Hygon Information
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Hygon is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Hygon Information go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Hygon Information
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the Hygon Information. In addition to that, Hainan Haiqi is 1.4 times more volatile than Hygon Information Technology. It trades about -0.01 of its total potential returns per unit of risk. Hygon Information Technology is currently generating about 0.34 per unit of volatility. If you would invest 11,826 in Hygon Information Technology on September 26, 2024 and sell it today you would earn a total of 2,249 from holding Hygon Information Technology or generate 19.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Hygon Information Technology
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Hygon Information |
Hainan Haiqi and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Hygon Information
The main advantage of trading using opposite Hainan Haiqi and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Hainan Haiqi vs. Fiberhome Telecommunication Technologies | Hainan Haiqi vs. Jinhui Liquor Co | Hainan Haiqi vs. Zhongrun Resources Investment | Hainan Haiqi vs. Qumei Furniture Group |
| Hygon Information vs. Industrial and Commercial | Hygon Information vs. Agricultural Bank of | Hygon Information vs. China Construction Bank | Hygon Information vs. Bank of China |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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