Correlation Between Haima Automobile and Changchun Engley
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By analyzing existing cross correlation between Haima Automobile Group and Changchun Engley Automobile, you can compare the effects of market volatilities on Haima Automobile and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Changchun Engley.
Diversification Opportunities for Haima Automobile and Changchun Engley
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Changchun is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Haima Automobile i.e., Haima Automobile and Changchun Engley go up and down completely randomly.
Pair Corralation between Haima Automobile and Changchun Engley
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Changchun Engley. In addition to that, Haima Automobile is 2.31 times more volatile than Changchun Engley Automobile. It trades about -0.02 of its total potential returns per unit of risk. Changchun Engley Automobile is currently generating about 0.1 per unit of volatility. If you would invest 408.00 in Changchun Engley Automobile on September 4, 2024 and sell it today you would earn a total of 17.00 from holding Changchun Engley Automobile or generate 4.17% 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. Changchun Engley Automobile
Performance |
| Timeline |
| Haima Automobile |
| Changchun Engley Aut |
Haima Automobile and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Changchun Engley
The main advantage of trading using opposite Haima Automobile and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank | Haima Automobile vs. Agricultural Bank of | Haima Automobile vs. Bank of China |
| Changchun Engley vs. Shengda Mining Co | Changchun Engley vs. Beijing Kaiwen Education | Changchun Engley vs. Changjiang Publishing Media | Changchun Engley vs. Shandong Mining Machinery |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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