Correlation Between Haima Automobile and Zoje Resources
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By analyzing existing cross correlation between Haima Automobile Group and Zoje Resources Investment, you can compare the effects of market volatilities on Haima Automobile and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Zoje Resources.
Diversification Opportunities for Haima Automobile and Zoje Resources
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Haima and Zoje is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Haima Automobile i.e., Haima Automobile and Zoje Resources go up and down completely randomly.
Pair Corralation between Haima Automobile and Zoje Resources
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.31 times more return on investment than Zoje Resources. However, Haima Automobile is 1.31 times more volatile than Zoje Resources Investment. It trades about 0.1 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.09 per unit of risk. If you would invest 399.00 in Haima Automobile Group on August 29, 2024 and sell it today you would earn a total of 44.00 from holding Haima Automobile Group or generate 11.03% 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. Zoje Resources Investment
Performance |
| Timeline |
| Haima Automobile |
| Zoje Resources Investment |
Haima Automobile and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Zoje Resources
The main advantage of trading using opposite Haima Automobile and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Haima Automobile vs. Xinjiang Tianrun Dairy | Haima Automobile vs. Yonyou Auto Information | Haima Automobile vs. Northking Information Technology | Haima Automobile vs. Anji Foodstuff Co |
| Zoje Resources vs. Eastern Communications Co | Zoje Resources vs. Haima Automobile Group | Zoje Resources vs. Eastroc Beverage Group | Zoje Resources vs. Anji Foodstuff Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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