Correlation Between Haima Automobile and Guangdong Shenglu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Haima Automobile Group and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Haima Automobile and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Guangdong Shenglu.
Diversification Opportunities for Haima Automobile and Guangdong Shenglu
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Guangdong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Haima Automobile i.e., Haima Automobile and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Haima Automobile and Guangdong Shenglu
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.99 times more return on investment than Guangdong Shenglu. However, Haima Automobile is 1.99 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.11 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.01 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Haima Automobile |
| Guangdong Shenglu |
Haima Automobile and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Guangdong Shenglu
The main advantage of trading using opposite Haima Automobile and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. China Longyuan Power | Haima Automobile vs. Changshu Tongrun Auto | Haima Automobile vs. PetroChina Co Ltd |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |