Correlation Between Haima Automobile and Rongan Property
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By analyzing existing cross correlation between Haima Automobile Group and Rongan Property Co, you can compare the effects of market volatilities on Haima Automobile and Rongan Property 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 Rongan Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Rongan Property.
Diversification Opportunities for Haima Automobile and Rongan Property
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Rongan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Rongan Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongan Property 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 Rongan Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongan Property has no effect on the direction of Haima Automobile i.e., Haima Automobile and Rongan Property go up and down completely randomly.
Pair Corralation between Haima Automobile and Rongan Property
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 0.77 times more return on investment than Rongan Property. However, Haima Automobile Group is 1.29 times less risky than Rongan Property. It trades about 0.06 of its potential returns per unit of risk. Rongan Property Co is currently generating about -0.21 per unit of risk. If you would invest 387.00 in Haima Automobile Group on November 4, 2024 and sell it today you would earn a total of 7.00 from holding Haima Automobile Group or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Rongan Property Co
Performance |
| Timeline |
| Haima Automobile |
| Rongan Property |
Haima Automobile and Rongan Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Rongan Property
The main advantage of trading using opposite Haima Automobile and Rongan Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Rongan Property 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 Rongan Property will offset losses from the drop in Rongan Property's long position.| Haima Automobile vs. HMTNew Technical | Haima Automobile vs. XiaMen HongXin Electron tech | Haima Automobile vs. Guangzhou Dongfang Hotel | Haima Automobile vs. Eyebright Medical Technology |
| Rongan Property vs. Kunshan Dongwei Technology | Rongan Property vs. Qingdao Foods Co | Rongan Property vs. Soyea Technology Co | Rongan Property vs. New Hope Dairy |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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