Correlation Between Haima Automobile and Zhejiang Yayi
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By analyzing existing cross correlation between Haima Automobile Group and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Haima Automobile and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Zhejiang Yayi.
Diversification Opportunities for Haima Automobile and Zhejiang Yayi
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Zhejiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Haima Automobile i.e., Haima Automobile and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Haima Automobile and Zhejiang Yayi
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.02 times more return on investment than Zhejiang Yayi. However, Haima Automobile is 1.02 times more volatile than Zhejiang Yayi Metal. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.01 per unit of risk. If you would invest 530.00 in Haima Automobile Group on September 4, 2024 and sell it today you would lose (35.00) from holding Haima Automobile Group or give up 6.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Haima Automobile |
| Zhejiang Yayi Metal |
Haima Automobile and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Zhejiang Yayi
The main advantage of trading using opposite Haima Automobile and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank | Haima Automobile vs. Agricultural Bank of | Haima Automobile vs. Bank of China |
| Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. China Construction Bank | Zhejiang Yayi vs. Bank of China |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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