Correlation Between Jilin Chemical and Haima Automobile
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By analyzing existing cross correlation between Jilin Chemical Fibre and Haima Automobile Group, you can compare the effects of market volatilities on Jilin Chemical and Haima Automobile 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 Jilin Chemical with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Haima Automobile.
Diversification Opportunities for Jilin Chemical and Haima Automobile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Haima is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Jilin Chemical 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 Jilin Chemical Fibre are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Haima Automobile go up and down completely randomly.
Pair Corralation between Jilin Chemical and Haima Automobile
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 1.3 times less risky than Haima Automobile. The stock trades about -0.6 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about -0.38 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Haima Automobile Group on October 13, 2024 and sell it today you would lose (107.00) from holding Haima Automobile Group or give up 21.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Haima Automobile Group
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Haima Automobile |
Jilin Chemical and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Haima Automobile
The main advantage of trading using opposite Jilin Chemical and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Jilin Chemical vs. Zijin Mining Group | Jilin Chemical vs. Wanhua Chemical Group | Jilin Chemical vs. Baoshan Iron Steel | Jilin Chemical vs. Shandong Gold Mining |
| Haima Automobile vs. Jilin Chemical Fibre | Haima Automobile vs. Guangzhou Jointas Chemical | Haima Automobile vs. Xinxiang Chemical Fiber | Haima Automobile vs. Liuzhou Chemical Industry |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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