Correlation Between Haima Automobile and China Vanke
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By analyzing existing cross correlation between Haima Automobile Group and China Vanke Co, you can compare the effects of market volatilities on Haima Automobile and China Vanke 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 Haima Automobile with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and China Vanke.
Diversification Opportunities for Haima Automobile and China Vanke
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Haima Automobile 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 Haima Automobile Group are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Haima Automobile i.e., Haima Automobile and China Vanke go up and down completely randomly.
Pair Corralation between Haima Automobile and China Vanke
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.94 times more return on investment than China Vanke. However, Haima Automobile is 1.94 times more volatile than China Vanke Co. It trades about 0.2 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.06 per unit of risk. If you would invest 339.00 in Haima Automobile Group on September 13, 2024 and sell it today you would earn a total of 156.00 from holding Haima Automobile Group or generate 46.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. China Vanke Co
Performance |
| Timeline |
| Haima Automobile |
| China Vanke |
Haima Automobile and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and China Vanke
The main advantage of trading using opposite Haima Automobile and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| Haima Automobile vs. Cambricon Technologies Corp | Haima Automobile vs. Loongson Technology Corp | Haima Automobile vs. Shenzhen Fortune Trend | Haima Automobile vs. Chongqing Road Bridge |
| China Vanke vs. Haima Automobile Group | China Vanke vs. Shanghai Rendu Biotechnology | China Vanke vs. Shenzhen Bioeasy Biotechnology | China Vanke vs. Anhui Jianghuai Automobile |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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