Correlation Between Haima Automobile and Yingde Greatchem
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By analyzing existing cross correlation between Haima Automobile Group and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Haima Automobile and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Yingde Greatchem.
Diversification Opportunities for Haima Automobile and Yingde Greatchem
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Yingde is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Haima Automobile i.e., Haima Automobile and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Haima Automobile and Yingde Greatchem
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.68 times more return on investment than Yingde Greatchem. However, Haima Automobile is 1.68 times more volatile than Yingde Greatchem Chemicals. It trades about 0.1 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about 0.07 per unit of risk. If you would invest 332.00 in Haima Automobile Group on September 3, 2024 and sell it today you would earn a total of 163.00 from holding Haima Automobile Group or generate 49.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Haima Automobile |
| Yingde Greatchem Che |
Haima Automobile and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Yingde Greatchem
The main advantage of trading using opposite Haima Automobile and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Haima Automobile vs. Hainan Haiqi Transportation | Haima Automobile vs. Guangdong Brandmax Marketing | Haima Automobile vs. Zhejiang Daily Media | Haima Automobile vs. Heilongjiang Publishing Media |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Hoshine Silicon Ind |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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