Correlation Between Haima Automobile and Sinomach Automobile
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By analyzing existing cross correlation between Haima Automobile Group and Sinomach Automobile Co, you can compare the effects of market volatilities on Haima Automobile and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Sinomach Automobile.
Diversification Opportunities for Haima Automobile and Sinomach Automobile
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Sinomach is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Haima Automobile i.e., Haima Automobile and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Haima Automobile and Sinomach Automobile
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.12 times more return on investment than Sinomach Automobile. However, Haima Automobile is 1.12 times more volatile than Sinomach Automobile Co. It trades about 0.01 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.0 per unit of risk. If you would invest 527.00 in Haima Automobile Group on August 25, 2024 and sell it today you would lose (83.00) from holding Haima Automobile Group or give up 15.75% 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. Sinomach Automobile Co
Performance |
| Timeline |
| Haima Automobile |
| Sinomach Automobile |
Haima Automobile and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Sinomach Automobile
The main advantage of trading using opposite Haima Automobile and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. China Longyuan Power | Haima Automobile vs. Changshu Tongrun Auto | Haima Automobile vs. PetroChina Co Ltd |
| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD Co Ltd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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