Correlation Between Dazhong Transportation and Hainan Haiqi
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By analyzing existing cross correlation between Dazhong Transportation Group and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Hainan Haiqi.
Diversification Opportunities for Dazhong Transportation and Hainan Haiqi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dazhong and Hainan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group 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 Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Hainan Haiqi
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 0.9 times more return on investment than Hainan Haiqi. However, Dazhong Transportation Group is 1.11 times less risky than Hainan Haiqi. It trades about -0.35 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.5 per unit of risk. If you would invest 26.00 in Dazhong Transportation Group on October 14, 2024 and sell it today you would lose (4.00) from holding Dazhong Transportation Group or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Dazhong Transportation |
| Hainan Haiqi Transpo |
Dazhong Transportation and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Hainan Haiqi
The main advantage of trading using opposite Dazhong Transportation and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. Youngy Health Co | Dazhong Transportation vs. PKU HealthCare Corp | Dazhong Transportation vs. Mingchen Health Co | Dazhong Transportation vs. Zhejiang Kingland Pipeline |
| Hainan Haiqi vs. Rising Nonferrous Metals | Hainan Haiqi vs. Shenzhen Topway Video | Hainan Haiqi vs. Guocheng Mining Co | Hainan Haiqi vs. Pengxin International Mining |
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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