Correlation Between Haima Automobile and Nanjing Putian
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By analyzing existing cross correlation between Haima Automobile Group and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Haima Automobile and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Nanjing Putian.
Diversification Opportunities for Haima Automobile and Nanjing Putian
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Nanjing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Haima Automobile i.e., Haima Automobile and Nanjing Putian go up and down completely randomly.
Pair Corralation between Haima Automobile and Nanjing Putian
Assuming the 90 days trading horizon Haima Automobile is expected to generate 4.06 times less return on investment than Nanjing Putian. In addition to that, Haima Automobile is 1.03 times more volatile than Nanjing Putian Telecommunications. It trades about 0.01 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.04 per unit of volatility. If you would invest 303.00 in Nanjing Putian Telecommunications on August 31, 2024 and sell it today you would earn a total of 157.00 from holding Nanjing Putian Telecommunications or generate 51.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Haima Automobile Group vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Haima Automobile |
| Nanjing Putian Telec |
Haima Automobile and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Nanjing Putian
The main advantage of trading using opposite Haima Automobile and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Haima Automobile vs. China State Construction | Haima Automobile vs. China Merchants Shekou | Haima Automobile vs. Huafa Industrial Co | Haima Automobile vs. China International Capital |
| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. Contemporary Amperex Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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