Correlation Between Haima Automobile and Lecron Energy
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By analyzing existing cross correlation between Haima Automobile Group and Lecron Energy Saving, you can compare the effects of market volatilities on Haima Automobile and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Lecron Energy.
Diversification Opportunities for Haima Automobile and Lecron Energy
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and Lecron is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Haima Automobile i.e., Haima Automobile and Lecron Energy go up and down completely randomly.
Pair Corralation between Haima Automobile and Lecron Energy
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 0.83 times more return on investment than Lecron Energy. However, Haima Automobile Group is 1.21 times less risky than Lecron Energy. It trades about 0.01 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about 0.01 per unit of risk. If you would invest 411.00 in Haima Automobile Group on October 16, 2024 and sell it today you would lose (30.00) from holding Haima Automobile Group or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Lecron Energy Saving
Performance |
| Timeline |
| Haima Automobile |
| Lecron Energy Saving |
Haima Automobile and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Lecron Energy
The main advantage of trading using opposite Haima Automobile and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Haima Automobile vs. Dezhan HealthCare Co | Haima Automobile vs. YiDong Electronics Technology | Haima Automobile vs. China Reform Health | Haima Automobile vs. Meinian Onehealth Healthcare |
| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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