Correlation Between Haima Automobile and Risuntek
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By analyzing existing cross correlation between Haima Automobile Group and Risuntek, you can compare the effects of market volatilities on Haima Automobile and Risuntek 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 Risuntek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Risuntek.
Diversification Opportunities for Haima Automobile and Risuntek
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Risuntek is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Risuntek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Risuntek 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 Risuntek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Risuntek has no effect on the direction of Haima Automobile i.e., Haima Automobile and Risuntek go up and down completely randomly.
Pair Corralation between Haima Automobile and Risuntek
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Risuntek. But the stock apears to be less risky and, when comparing its historical volatility, Haima Automobile Group is 1.11 times less risky than Risuntek. The stock trades about -0.02 of its potential returns per unit of risk. The Risuntek is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,115 in Risuntek on September 5, 2024 and sell it today you would earn a total of 513.00 from holding Risuntek or generate 24.26% 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. Risuntek
Performance |
| Timeline |
| Haima Automobile |
| Risuntek |
Haima Automobile and Risuntek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Risuntek
The main advantage of trading using opposite Haima Automobile and Risuntek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Risuntek 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 Risuntek will offset losses from the drop in Risuntek's long position.| Haima Automobile vs. Humanwell Healthcare Group | Haima Automobile vs. Tsingtao Brewery Co | Haima Automobile vs. Dymatic Chemicals | Haima Automobile vs. Sunny Loan Top |
| Risuntek vs. Qumei Furniture Group | Risuntek vs. Sobute New Materials | Risuntek vs. DO Home Collection | Risuntek vs. Guangzhou Tinci Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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