Correlation Between Haima Automobile and Offshore Oil
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By analyzing existing cross correlation between Haima Automobile Group and Offshore Oil Engineering, you can compare the effects of market volatilities on Haima Automobile and Offshore Oil 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 Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Offshore Oil.
Diversification Opportunities for Haima Automobile and Offshore Oil
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and Offshore is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering 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 Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of Haima Automobile i.e., Haima Automobile and Offshore Oil go up and down completely randomly.
Pair Corralation between Haima Automobile and Offshore Oil
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 2.78 times more return on investment than Offshore Oil. However, Haima Automobile is 2.78 times more volatile than Offshore Oil Engineering. It trades about 0.13 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.64 per unit of risk. If you would invest 394.00 in Haima Automobile Group on November 27, 2024 and sell it today you would earn a total of 14.00 from holding Haima Automobile Group or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Offshore Oil Engineering
Performance |
| Timeline |
| Haima Automobile |
| Offshore Oil Engineering |
Haima Automobile and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Offshore Oil
The main advantage of trading using opposite Haima Automobile and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Offshore Oil 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 Offshore Oil will offset losses from the drop in Offshore Oil's long position.| Haima Automobile vs. Sunwoda Electronic | Haima Automobile vs. Kidswant Children Products | Haima Automobile vs. Techshine Electronics Co | Haima Automobile vs. Sanbo Hospital Management |
| Offshore Oil vs. Anhui Huaheng Biotechnology | Offshore Oil vs. Ligao Foods CoLtd | Offshore Oil vs. Fujian Wanchen Biotechnology | Offshore Oil vs. Jinhe Biotechnology 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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