Correlation Between Haima Automobile and Western Metal
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By analyzing existing cross correlation between Haima Automobile Group and Western Metal Materials, you can compare the effects of market volatilities on Haima Automobile and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Western Metal.
Diversification Opportunities for Haima Automobile and Western Metal
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Western is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Haima Automobile i.e., Haima Automobile and Western Metal go up and down completely randomly.
Pair Corralation between Haima Automobile and Western Metal
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.44 times more return on investment than Western Metal. However, Haima Automobile is 1.44 times more volatile than Western Metal Materials. It trades about 0.03 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 per unit of risk. If you would invest 426.00 in Haima Automobile Group on September 4, 2024 and sell it today you would earn a total of 69.00 from holding Haima Automobile Group or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Western Metal Materials
Performance |
| Timeline |
| Haima Automobile |
| Western Metal Materials |
Haima Automobile and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Western Metal
The main advantage of trading using opposite Haima Automobile and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal'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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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