Correlation Between Haima Automobile and Guangzhou Zhujiang
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By analyzing existing cross correlation between Haima Automobile Group and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Haima Automobile and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Guangzhou Zhujiang.
Diversification Opportunities for Haima Automobile and Guangzhou Zhujiang
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and Guangzhou is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Haima Automobile i.e., Haima Automobile and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Haima Automobile and Guangzhou Zhujiang
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 2.14 times more return on investment than Guangzhou Zhujiang. However, Haima Automobile is 2.14 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.08 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.06 per unit of risk. If you would invest 339.00 in Haima Automobile Group on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Haima Automobile Group or generate 32.74% 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. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Haima Automobile |
| Guangzhou Zhujiang |
Haima Automobile and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Guangzhou Zhujiang
The main advantage of trading using opposite Haima Automobile and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Haima Automobile vs. Biwin Storage Technology | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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