Correlation Between Haima Automobile and Zhejiang Qianjiang
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By analyzing existing cross correlation between Haima Automobile Group and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Haima Automobile and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Zhejiang Qianjiang.
Diversification Opportunities for Haima Automobile and Zhejiang Qianjiang
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and Zhejiang is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Haima Automobile i.e., Haima Automobile and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Haima Automobile and Zhejiang Qianjiang
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.41 times more return on investment than Zhejiang Qianjiang. However, Haima Automobile is 1.41 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.16 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.02 per unit of risk. If you would invest 309.00 in Haima Automobile Group on August 30, 2024 and sell it today you would earn a total of 135.00 from holding Haima Automobile Group or generate 43.69% 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. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Haima Automobile |
| Zhejiang Qianjiang |
Haima Automobile and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Zhejiang Qianjiang
The main advantage of trading using opposite Haima Automobile and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Haima Automobile vs. China State Construction | Haima Automobile vs. China Merchants Shekou | Haima Automobile vs. Huafa Industrial Co | Haima Automobile vs. China International Capital |
| Zhejiang Qianjiang vs. Shengda Mining Co | Zhejiang Qianjiang vs. Shandong Hongchuang Aluminum | Zhejiang Qianjiang vs. Hefei Metalforming Mach | Zhejiang Qianjiang vs. China Aluminum International |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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