Correlation Between Haima Automobile and CITIC Guoan
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By analyzing existing cross correlation between Haima Automobile Group and CITIC Guoan Information, you can compare the effects of market volatilities on Haima Automobile and CITIC Guoan 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 CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and CITIC Guoan.
Diversification Opportunities for Haima Automobile and CITIC Guoan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Haima and CITIC is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information 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 CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Haima Automobile i.e., Haima Automobile and CITIC Guoan go up and down completely randomly.
Pair Corralation between Haima Automobile and CITIC Guoan
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.08 times more return on investment than CITIC Guoan. However, Haima Automobile is 1.08 times more volatile than CITIC Guoan Information. It trades about 0.2 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.22 per unit of risk. If you would invest 305.00 in Haima Automobile Group on September 4, 2024 and sell it today you would earn a total of 190.00 from holding Haima Automobile Group or generate 62.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. CITIC Guoan Information
Performance |
| Timeline |
| Haima Automobile |
| CITIC Guoan Information |
Haima Automobile and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and CITIC Guoan
The main advantage of trading using opposite Haima Automobile and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank | Haima Automobile vs. Agricultural Bank of | Haima Automobile vs. Bank of China |
| CITIC Guoan vs. Zhejiang Qianjiang Motorcycle | CITIC Guoan vs. Hubei Dinglong Chemical | CITIC Guoan vs. Haima Automobile Group | CITIC Guoan vs. Jiangsu Xinri E Vehicle |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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