Correlation Between Haima Automobile and Anhui Huilong
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By analyzing existing cross correlation between Haima Automobile Group and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Haima Automobile and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Anhui Huilong.
Diversification Opportunities for Haima Automobile and Anhui Huilong
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Anhui is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Haima Automobile i.e., Haima Automobile and Anhui Huilong go up and down completely randomly.
Pair Corralation between Haima Automobile and Anhui Huilong
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Anhui Huilong. In addition to that, Haima Automobile is 1.08 times more volatile than Anhui Huilong Agricultural. It trades about -0.02 of its total potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about 0.21 per unit of volatility. If you would invest 539.00 in Anhui Huilong Agricultural on September 4, 2024 and sell it today you would earn a total of 110.00 from holding Anhui Huilong Agricultural or generate 20.41% 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. Anhui Huilong Agricultural
Performance |
| Timeline |
| Haima Automobile |
| Anhui Huilong Agricu |
Haima Automobile and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Anhui Huilong
The main advantage of trading using opposite Haima Automobile and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong'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 |
| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Rongsheng Petrochemical Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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