Correlation Between Haima Automobile and China Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Haima Automobile Group and China Securities 800, you can compare the effects of market volatilities on Haima Automobile and China Securities 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 Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and China Securities.
Diversification Opportunities for Haima Automobile and China Securities
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Haima Automobile i.e., Haima Automobile and China Securities go up and down completely randomly.
Pair Corralation between Haima Automobile and China Securities
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 2.97 times more return on investment than China Securities. However, Haima Automobile is 2.97 times more volatile than China Securities 800. It trades about 0.0 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.02 per unit of risk. If you would invest 505.00 in Haima Automobile Group on October 14, 2024 and sell it today you would lose (120.00) from holding Haima Automobile Group or give up 23.76% 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. China Securities 800
Performance |
| Timeline |
Haima Automobile and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Haima Automobile Group
Pair trading matchups for Haima Automobile
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Haima Automobile and China Securities
The main advantage of trading using opposite Haima Automobile and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, China Securities 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 Securities will offset losses from the drop in China Securities' long position.| Haima Automobile vs. Hangzhou Gisway Information | Haima Automobile vs. Heilongjiang Publishing Media | Haima Automobile vs. AVCON Information Tech | Haima Automobile vs. Shenzhen SDG Information |
| China Securities vs. Sunwave Communications Co | China Securities vs. Dongfeng Automobile Co | China Securities vs. Nanjing Vishee Medical | China Securities vs. Haima Automobile Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |