Correlation Between Haima Automobile and Mingchen Health
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By analyzing existing cross correlation between Haima Automobile Group and Mingchen Health Co, you can compare the effects of market volatilities on Haima Automobile and Mingchen Health 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 Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Mingchen Health.
Diversification Opportunities for Haima Automobile and Mingchen Health
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Mingchen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health 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 Mingchen Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingchen Health has no effect on the direction of Haima Automobile i.e., Haima Automobile and Mingchen Health go up and down completely randomly.
Pair Corralation between Haima Automobile and Mingchen Health
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.1 times more return on investment than Mingchen Health. However, Haima Automobile is 1.1 times more volatile than Mingchen Health Co. It trades about -0.01 of its potential returns per unit of risk. Mingchen Health Co is currently generating about -0.05 per unit of risk. If you would invest 589.00 in Haima Automobile Group on August 26, 2024 and sell it today you would lose (145.00) from holding Haima Automobile Group or give up 24.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Mingchen Health Co
Performance |
| Timeline |
| Haima Automobile |
| Mingchen Health |
Haima Automobile and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Mingchen Health
The main advantage of trading using opposite Haima Automobile and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Mingchen Health 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 Mingchen Health will offset losses from the drop in Mingchen Health'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 |
| Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. China Construction Bank | Mingchen Health vs. Bank of China | Mingchen Health vs. Agricultural Bank of |
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 Stocks Directory module to find actively traded stocks across global markets.
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