Correlation Between Haima Automobile and China Construction
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By analyzing existing cross correlation between Haima Automobile Group and China Construction Bank, you can compare the effects of market volatilities on Haima Automobile and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and China Construction.
Diversification Opportunities for Haima Automobile and China Construction
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haima and China is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Haima Automobile i.e., Haima Automobile and China Construction go up and down completely randomly.
Pair Corralation between Haima Automobile and China Construction
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the China Construction. In addition to that, Haima Automobile is 2.35 times more volatile than China Construction Bank. It trades about -0.3 of its total potential returns per unit of risk. China Construction Bank is currently generating about 0.18 per unit of volatility. If you would invest 825.00 in China Construction Bank on October 10, 2024 and sell it today you would earn a total of 40.00 from holding China Construction Bank or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. China Construction Bank
Performance |
| Timeline |
| Haima Automobile |
| China Construction Bank |
Haima Automobile and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and China Construction
The main advantage of trading using opposite Haima Automobile and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.| Haima Automobile vs. Suzhou Xingye Material | Haima Automobile vs. Fuda Alloy Materials | Haima Automobile vs. Jiangsu Yanghe Brewery | Haima Automobile vs. Guangdong Qunxing Toys |
| China Construction vs. Chengdu Xinzhu RoadBridge | China Construction vs. Heilongjiang Transport Development | China Construction vs. Xinjiang Beixin RoadBridge | China Construction vs. Muyuan Foodstuff 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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