Correlation Between Haima Automobile and Guangdong Transtek
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By analyzing existing cross correlation between Haima Automobile Group and Guangdong Transtek Medical, you can compare the effects of market volatilities on Haima Automobile and Guangdong Transtek 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 Guangdong Transtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Guangdong Transtek.
Diversification Opportunities for Haima Automobile and Guangdong Transtek
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and Guangdong is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Guangdong Transtek Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Transtek 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 Guangdong Transtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Transtek has no effect on the direction of Haima Automobile i.e., Haima Automobile and Guangdong Transtek go up and down completely randomly.
Pair Corralation between Haima Automobile and Guangdong Transtek
Assuming the 90 days trading horizon Haima Automobile is expected to generate 32.76 times less return on investment than Guangdong Transtek. But when comparing it to its historical volatility, Haima Automobile Group is 1.14 times less risky than Guangdong Transtek. It trades about 0.0 of its potential returns per unit of risk. Guangdong Transtek Medical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 973.00 in Guangdong Transtek Medical on October 14, 2024 and sell it today you would earn a total of 243.00 from holding Guangdong Transtek Medical or generate 24.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Guangdong Transtek Medical
Performance |
| Timeline |
| Haima Automobile |
| Guangdong Transtek |
Haima Automobile and Guangdong Transtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Guangdong Transtek
The main advantage of trading using opposite Haima Automobile and Guangdong Transtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Guangdong Transtek 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 Guangdong Transtek will offset losses from the drop in Guangdong Transtek's long position.| Haima Automobile vs. Hangzhou Gisway Information | Haima Automobile vs. Heilongjiang Publishing Media | Haima Automobile vs. AVCON Information Tech | Haima Automobile vs. Shenzhen SDG Information |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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