Correlation Between Haima Automobile and Jiujiang Shanshui
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By analyzing existing cross correlation between Haima Automobile Group and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Haima Automobile and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Jiujiang Shanshui.
Diversification Opportunities for Haima Automobile and Jiujiang Shanshui
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Jiujiang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Haima Automobile i.e., Haima Automobile and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Haima Automobile and Jiujiang Shanshui
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Jiujiang Shanshui. In addition to that, Haima Automobile is 1.5 times more volatile than Jiujiang Shanshui Technology. It trades about -0.47 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.33 per unit of volatility. If you would invest 1,660 in Jiujiang Shanshui Technology on October 16, 2024 and sell it today you would lose (201.00) from holding Jiujiang Shanshui Technology or give up 12.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Haima Automobile |
| Jiujiang Shanshui |
Haima Automobile and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Jiujiang Shanshui
The main advantage of trading using opposite Haima Automobile and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Haima Automobile vs. Kontour Medical Technology | Haima Automobile vs. Guangdong Transtek Medical | Haima Automobile vs. Tieling Newcity Investment | Haima Automobile vs. Zhonghong Pulin Medical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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