Correlation Between Haima Automobile and Dongnan Electronics
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By analyzing existing cross correlation between Haima Automobile Group and Dongnan Electronics Co, you can compare the effects of market volatilities on Haima Automobile and Dongnan Electronics 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 Dongnan Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Dongnan Electronics.
Diversification Opportunities for Haima Automobile and Dongnan Electronics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Dongnan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Dongnan Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongnan Electronics 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 Dongnan Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongnan Electronics has no effect on the direction of Haima Automobile i.e., Haima Automobile and Dongnan Electronics go up and down completely randomly.
Pair Corralation between Haima Automobile and Dongnan Electronics
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Dongnan Electronics. In addition to that, Haima Automobile is 1.15 times more volatile than Dongnan Electronics Co. It trades about -0.09 of its total potential returns per unit of risk. Dongnan Electronics Co is currently generating about -0.07 per unit of volatility. If you would invest 2,458 in Dongnan Electronics Co on October 16, 2024 and sell it today you would lose (239.00) from holding Dongnan Electronics Co or give up 9.72% 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. Dongnan Electronics Co
Performance |
| Timeline |
| Haima Automobile |
| Dongnan Electronics |
Haima Automobile and Dongnan Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Dongnan Electronics
The main advantage of trading using opposite Haima Automobile and Dongnan Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Dongnan Electronics 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 Dongnan Electronics will offset losses from the drop in Dongnan Electronics' 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 |
| Dongnan Electronics vs. Songz Automobile Air | Dongnan Electronics vs. Haima Automobile Group | Dongnan Electronics vs. Fibocom Wireless | Dongnan Electronics vs. Zhangjiagang Freetrade Science |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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