Correlation Between Beijing Baolande and Hainan Haiqi
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By analyzing existing cross correlation between Beijing Baolande Software and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Beijing Baolande 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 Beijing Baolande with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Hainan Haiqi.
Diversification Opportunities for Beijing Baolande and Hainan Haiqi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Hainan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software 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 Beijing Baolande 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 Beijing Baolande Software 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 Beijing Baolande i.e., Beijing Baolande and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Beijing Baolande and Hainan Haiqi
Assuming the 90 days trading horizon Beijing Baolande Software is expected to generate 1.8 times more return on investment than Hainan Haiqi. However, Beijing Baolande is 1.8 times more volatile than Hainan Haiqi Transportation. It trades about 0.14 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.07 per unit of risk. If you would invest 1,612 in Beijing Baolande Software on October 18, 2024 and sell it today you would earn a total of 1,058 from holding Beijing Baolande Software or generate 65.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Beijing Baolande Software |
| Hainan Haiqi Transpo |
Beijing Baolande and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and Hainan Haiqi
The main advantage of trading using opposite Beijing Baolande and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande 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.| Beijing Baolande vs. CareRay Digital Medical | Beijing Baolande vs. Tinavi Medical Technologies | Beijing Baolande vs. Shuhua Sports Co | Beijing Baolande vs. Hengkang Medical Group |
| Hainan Haiqi vs. Thunder Software Technology | Hainan Haiqi vs. Beijing Baolande Software | Hainan Haiqi vs. Zhengping RoadBridge Constr | Hainan Haiqi vs. Dareway Software Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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