Correlation Between Haima Automobile and Ningbo Homelink
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By analyzing existing cross correlation between Haima Automobile Group and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Haima Automobile and Ningbo Homelink 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 Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Ningbo Homelink.
Diversification Opportunities for Haima Automobile and Ningbo Homelink
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Ningbo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco 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 Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Haima Automobile i.e., Haima Automobile and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Haima Automobile and Ningbo Homelink
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Ningbo Homelink. In addition to that, Haima Automobile is 1.59 times more volatile than Ningbo Homelink Eco iTech. It trades about -0.11 of its total potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about 0.0 per unit of volatility. If you would invest 1,718 in Ningbo Homelink Eco iTech on September 12, 2024 and sell it today you would lose (7.00) from holding Ningbo Homelink Eco iTech or give up 0.41% 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. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Haima Automobile |
| Ningbo Homelink Eco |
Haima Automobile and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Ningbo Homelink
The main advantage of trading using opposite Haima Automobile and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Ningbo Homelink 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 Ningbo Homelink will offset losses from the drop in Ningbo Homelink's long position.| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Bank of China | Haima Automobile vs. Gansu Jiu Steel |
| Ningbo Homelink vs. Zijin Mining Group | Ningbo Homelink vs. Wanhua Chemical Group | Ningbo Homelink vs. Baoshan Iron Steel | Ningbo Homelink vs. Rongsheng Petrochemical Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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