Correlation Between Hainan Haiqi and Guobo Electronics
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Guobo Electronics Co, you can compare the effects of market volatilities on Hainan Haiqi and Guobo Electronics 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 Guobo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Guobo Electronics.
Diversification Opportunities for Hainan Haiqi and Guobo Electronics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Guobo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Guobo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guobo Electronics 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 Guobo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guobo Electronics has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Guobo Electronics go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Guobo Electronics
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the Guobo Electronics. In addition to that, Hainan Haiqi is 1.16 times more volatile than Guobo Electronics Co. It trades about -0.44 of its total potential returns per unit of risk. Guobo Electronics Co is currently generating about -0.06 per unit of volatility. If you would invest 4,796 in Guobo Electronics Co on October 17, 2024 and sell it today you would lose (162.00) from holding Guobo Electronics Co or give up 3.38% 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. Guobo Electronics Co
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Guobo Electronics |
Hainan Haiqi and Guobo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Guobo Electronics
The main advantage of trading using opposite Hainan Haiqi and Guobo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Guobo Electronics 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 Guobo Electronics will offset losses from the drop in Guobo Electronics' long position.| Hainan Haiqi vs. Thunder Software Technology | Hainan Haiqi vs. Beijing Baolande Software | Hainan Haiqi vs. Zhengping RoadBridge Constr | Hainan Haiqi vs. Dareway Software Co |
| Guobo Electronics vs. Hainan Haiqi Transportation | Guobo Electronics vs. Xinjiang Beixin RoadBridge | Guobo Electronics vs. Jiangsu Financial Leasing | Guobo Electronics vs. Anshan Senyuan Road |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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