Correlation Between Haima Automobile and Wuhan Yangtze
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By analyzing existing cross correlation between Haima Automobile Group and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Haima Automobile and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Wuhan Yangtze.
Diversification Opportunities for Haima Automobile and Wuhan Yangtze
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Wuhan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Haima Automobile i.e., Haima Automobile and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Haima Automobile and Wuhan Yangtze
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Haima Automobile Group is 1.29 times less risky than Wuhan Yangtze. The stock trades about -0.12 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,941 in Wuhan Yangtze Communication on September 1, 2024 and sell it today you would earn a total of 1,028 from holding Wuhan Yangtze Communication or generate 52.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Haima Automobile |
| Wuhan Yangtze Commun |
Haima Automobile and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Wuhan Yangtze
The main advantage of trading using opposite Haima Automobile and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Haima Automobile vs. Biwin Storage Technology | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank |
| Wuhan Yangtze vs. Industrial and Commercial | Wuhan Yangtze vs. Kweichow Moutai Co | Wuhan Yangtze vs. Agricultural Bank of | Wuhan Yangtze vs. China Mobile Limited |
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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