Correlation Between Hainan Haiqi and Guangdong Cellwise
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By analyzing existing cross correlation between Hainan Haiqi Transportation and Guangdong Cellwise Microelectronics, you can compare the effects of market volatilities on Hainan Haiqi and Guangdong Cellwise 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 Hainan Haiqi with a short position of Guangdong Cellwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and Guangdong Cellwise.
Diversification Opportunities for Hainan Haiqi and Guangdong Cellwise
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Guangdong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and Guangdong Cellwise Microelectr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Cellwise and Hainan Haiqi 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 Hainan Haiqi Transportation are associated (or correlated) with Guangdong Cellwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Cellwise has no effect on the direction of Hainan Haiqi i.e., Hainan Haiqi and Guangdong Cellwise go up and down completely randomly.
Pair Corralation between Hainan Haiqi and Guangdong Cellwise
Assuming the 90 days trading horizon Hainan Haiqi is expected to generate 4.2 times less return on investment than Guangdong Cellwise. In addition to that, Hainan Haiqi is 1.22 times more volatile than Guangdong Cellwise Microelectronics. It trades about 0.02 of its total potential returns per unit of risk. Guangdong Cellwise Microelectronics is currently generating about 0.12 per unit of volatility. If you would invest 4,866 in Guangdong Cellwise Microelectronics on September 25, 2024 and sell it today you would earn a total of 325.00 from holding Guangdong Cellwise Microelectronics or generate 6.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hainan Haiqi Transportation vs. Guangdong Cellwise Microelectr
Performance |
Timeline |
Hainan Haiqi Transpo |
Guangdong Cellwise |
Hainan Haiqi and Guangdong Cellwise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hainan Haiqi and Guangdong Cellwise
The main advantage of trading using opposite Hainan Haiqi and Guangdong Cellwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi position performs unexpectedly, Guangdong Cellwise 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 Guangdong Cellwise will offset losses from the drop in Guangdong Cellwise's long position.Hainan Haiqi vs. Kweichow Moutai Co | Hainan Haiqi vs. Shenzhen Mindray Bio Medical | Hainan Haiqi vs. Jiangsu Pacific Quartz | Hainan Haiqi vs. G bits Network Technology |
Guangdong Cellwise vs. Threes Company Media | Guangdong Cellwise vs. Fujian Newland Computer | Guangdong Cellwise vs. Guangdong Shenglu Telecommunication | Guangdong Cellwise vs. Jiangxi Hengda Hi Tech |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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