Correlation Between Haima Automobile and Changchun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Haima Automobile Group and Changchun UP Optotech, you can compare the effects of market volatilities on Haima Automobile and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Changchun.
Diversification Opportunities for Haima Automobile and Changchun
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Changchun is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Haima Automobile i.e., Haima Automobile and Changchun go up and down completely randomly.
Pair Corralation between Haima Automobile and Changchun
Assuming the 90 days trading horizon Haima Automobile is expected to generate 4.75 times less return on investment than Changchun. But when comparing it to its historical volatility, Haima Automobile Group is 1.05 times less risky than Changchun. It trades about 0.03 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,549 in Changchun UP Optotech on November 6, 2024 and sell it today you would earn a total of 180.00 from holding Changchun UP Optotech or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Changchun UP Optotech
Performance |
| Timeline |
| Haima Automobile |
| Changchun UP Optotech |
Haima Automobile and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Changchun
The main advantage of trading using opposite Haima Automobile and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Haima Automobile vs. Ningbo Homelink Eco iTech | Haima Automobile vs. Easyhome New Retail | Haima Automobile vs. Mengtian Home Group | Haima Automobile vs. Songz Automobile Air |
| Changchun vs. Southern PublishingMedia Co | Changchun vs. Hangzhou Gisway Information | Changchun vs. Xinhua Winshare Publishing | Changchun vs. Tangel Publishing |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |