Correlation Between Hainan Haiqi and Dazhong Transportation
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Dazhong Transportation Group, you can compare the effects of market volatilities on Hainan Haiqi and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Dazhong Transportation.
Diversification Opportunities for Hainan Haiqi and Dazhong Transportation
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Dazhong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Dazhong Transportation
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to under-perform the Dazhong Transportation. In addition to that, Hainan Haiqi is 1.46 times more volatile than Dazhong Transportation Group. It trades about -0.09 of its total potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.01 per unit of volatility. If you would invest 23.00 in Dazhong Transportation Group on October 28, 2024 and sell it today you would earn a total of 0.00 from holding Dazhong Transportation Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. Dazhong Transportation Group
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| Dazhong Transportation |
Hainan Haiqi and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and Dazhong Transportation
The main advantage of trading using opposite Hainan Haiqi and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Hainan Haiqi vs. Zhuhai Comleader Information | Hainan Haiqi vs. Guangzhou Ruoyuchen Information | Hainan Haiqi vs. Sublime China Information | Hainan Haiqi vs. East Money Information |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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