Correlation Between Zhejiang Yongjin and Hainan Haiqi
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Zhejiang Yongjin and Hainan Haiqi 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 Zhejiang Yongjin with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Hainan Haiqi.
Diversification Opportunities for Zhejiang Yongjin and Hainan Haiqi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Hainan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo and Zhejiang Yongjin 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 Zhejiang Yongjin Metal are associated (or correlated) with Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Hainan Haiqi
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to under-perform the Hainan Haiqi. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Yongjin Metal is 1.28 times less risky than Hainan Haiqi. The stock trades about -0.03 of its potential returns per unit of risk. The Hainan Haiqi Transportation is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,794 in Hainan Haiqi Transportation on August 31, 2024 and sell it today you would lose (784.00) from holding Hainan Haiqi Transportation or give up 28.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Hainan Haiqi Transpo |
Zhejiang Yongjin and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Hainan Haiqi
The main advantage of trading using opposite Zhejiang Yongjin and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Zhejiang Yongjin vs. Zijin Mining Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Rongsheng Petrochemical Co | Zhejiang Yongjin vs. Hoshine Silicon Ind |
| Hainan Haiqi vs. Zhejiang Yongjin Metal | Hainan Haiqi vs. Shanghai Yanpu Metal | Hainan Haiqi vs. Ye Chiu Metal | Hainan Haiqi vs. Shenzhen Bioeasy Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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