Correlation Between Haima Automobile and Heilongjiang Transport
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By analyzing existing cross correlation between Haima Automobile Group and Heilongjiang Transport Development, you can compare the effects of market volatilities on Haima Automobile and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Heilongjiang Transport.
Diversification Opportunities for Haima Automobile and Heilongjiang Transport
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Heilongjiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Haima Automobile i.e., Haima Automobile and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Haima Automobile and Heilongjiang Transport
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Heilongjiang Transport. In addition to that, Haima Automobile is 3.16 times more volatile than Heilongjiang Transport Development. It trades about -0.04 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.25 per unit of volatility. If you would invest 353.00 in Heilongjiang Transport Development on August 31, 2024 and sell it today you would earn a total of 35.00 from holding Heilongjiang Transport Development or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Haima Automobile |
| Heilongjiang Transport |
Haima Automobile and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Heilongjiang Transport
The main advantage of trading using opposite Haima Automobile and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Haima Automobile vs. China State Construction | Haima Automobile vs. China Merchants Shekou | Haima Automobile vs. Huafa Industrial Co | Haima Automobile vs. China International Capital |
| Heilongjiang Transport vs. Cultural Investment Holdings | Heilongjiang Transport vs. Gome Telecom Equipment | Heilongjiang Transport vs. Bus Online Co | Heilongjiang Transport vs. Holitech Technology 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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