Correlation Between Haima Automobile and Guangzhou Haige
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By analyzing existing cross correlation between Haima Automobile Group and Guangzhou Haige Communications, you can compare the effects of market volatilities on Haima Automobile and Guangzhou Haige 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 Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Guangzhou Haige.
Diversification Opportunities for Haima Automobile and Guangzhou Haige
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Guangzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Haima Automobile i.e., Haima Automobile and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Haima Automobile and Guangzhou Haige
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.43 times more return on investment than Guangzhou Haige. However, Haima Automobile is 1.43 times more volatile than Guangzhou Haige Communications. It trades about -0.23 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.33 per unit of risk. If you would invest 469.00 in Haima Automobile Group on October 20, 2024 and sell it today you would lose (69.00) from holding Haima Automobile Group or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Haima Automobile |
| Guangzhou Haige Comm |
Haima Automobile and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Guangzhou Haige
The main advantage of trading using opposite Haima Automobile and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.| Haima Automobile vs. Shanghai Broadband Technology | Haima Automobile vs. Xinjiang Beixin RoadBridge | Haima Automobile vs. Road Environment Technology | Haima Automobile vs. Soochow Suzhou Industrial |
| Guangzhou Haige vs. Allied Machinery Co | Guangzhou Haige vs. Haima Automobile Group | Guangzhou Haige vs. Quectel Wireless Solutions | Guangzhou Haige vs. Shenzhen Zhongzhuang Construction |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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