Correlation Between Shanghai Newtouch and Hainan Haiqi
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By analyzing existing cross correlation between Shanghai Newtouch Software and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Shanghai Newtouch 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 Shanghai Newtouch with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Hainan Haiqi.
Diversification Opportunities for Shanghai Newtouch and Hainan Haiqi
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Hainan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch 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 Shanghai Newtouch 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 Shanghai Newtouch 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 Shanghai Newtouch i.e., Shanghai Newtouch and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Hainan Haiqi
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to generate 1.55 times more return on investment than Hainan Haiqi. However, Shanghai Newtouch is 1.55 times more volatile than Hainan Haiqi Transportation. It trades about 0.03 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.02 per unit of risk. If you would invest 1,089 in Shanghai Newtouch Software on October 11, 2024 and sell it today you would earn a total of 353.00 from holding Shanghai Newtouch Software or generate 32.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Shanghai Newtouch |
| Hainan Haiqi Transpo |
Shanghai Newtouch and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Hainan Haiqi
The main advantage of trading using opposite Shanghai Newtouch and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch 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.| Shanghai Newtouch vs. Unisplendour Corp | Shanghai Newtouch vs. Jiangxi Hengda Hi Tech | Shanghai Newtouch vs. Shanghai Shibei Hi Tech | Shanghai Newtouch vs. Maccura Biotechnology Co |
| Hainan Haiqi vs. Beijing Kingsoft Office | Hainan Haiqi vs. Guangzhou Restaurants Group | Hainan Haiqi vs. Anhui Transport Consulting | Hainan Haiqi vs. Easyhome New Retail |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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