Correlation Between Haima Automobile and Tongling Nonferrous
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By analyzing existing cross correlation between Haima Automobile Group and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Haima Automobile and Tongling Nonferrous 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 Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Tongling Nonferrous.
Diversification Opportunities for Haima Automobile and Tongling Nonferrous
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Tongling is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous 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 Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Haima Automobile i.e., Haima Automobile and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Haima Automobile and Tongling Nonferrous
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Tongling Nonferrous. In addition to that, Haima Automobile is 1.92 times more volatile than Tongling Nonferrous Metals. It trades about -0.18 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.04 per unit of volatility. If you would invest 331.00 in Tongling Nonferrous Metals on October 28, 2024 and sell it today you would lose (4.00) from holding Tongling Nonferrous Metals or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Haima Automobile |
| Tongling Nonferrous |
Haima Automobile and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Tongling Nonferrous
The main advantage of trading using opposite Haima Automobile and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Haima Automobile vs. China Longyuan Power | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Guangxi Guiguan Electric | Haima Automobile vs. Yantai North Andre |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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