Correlation Between Haitong Securities and First Tractor
Can any of the company-specific risk be diversified away by investing in both Haitong Securities and First Tractor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Haitong Securities and First Tractor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitong Securities Co and First Tractor, you can compare the effects of market volatilities on Haitong Securities and First Tractor 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 Haitong Securities with a short position of First Tractor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitong Securities and First Tractor.
Diversification Opportunities for Haitong Securities and First Tractor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haitong and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haitong Securities Co and First Tractor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Tractor and Haitong Securities 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 Haitong Securities Co are associated (or correlated) with First Tractor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Tractor has no effect on the direction of Haitong Securities i.e., Haitong Securities and First Tractor go up and down completely randomly.
Pair Corralation between Haitong Securities and First Tractor
If you would invest 63.00 in First Tractor on September 12, 2024 and sell it today you would earn a total of 0.00 from holding First Tractor or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Haitong Securities Co vs. First Tractor
Performance |
| Timeline |
| Haitong Securities |
| First Tractor |
Haitong Securities and First Tractor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitong Securities and First Tractor
The main advantage of trading using opposite Haitong Securities and First Tractor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitong Securities position performs unexpectedly, First Tractor 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 First Tractor will offset losses from the drop in First Tractor's long position.| Haitong Securities vs. CITIC Securities Co | Haitong Securities vs. Up Fintech Holding | Haitong Securities vs. Futu Holdings | Haitong Securities vs. Bit Digital |
| First Tractor vs. Copa Holdings SA | First Tractor vs. United Airlines Holdings | First Tractor vs. Delta Air Lines | First Tractor vs. SkyWest |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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