Correlation Between Haima Automobile and Jiangsu Xinri
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By analyzing existing cross correlation between Haima Automobile Group and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Haima Automobile and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Jiangsu Xinri.
Diversification Opportunities for Haima Automobile and Jiangsu Xinri
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and Jiangsu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Haima Automobile i.e., Haima Automobile and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Haima Automobile and Jiangsu Xinri
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 2.56 times more return on investment than Jiangsu Xinri. However, Haima Automobile is 2.56 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.11 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.06 per unit of risk. If you would invest 399.00 in Haima Automobile Group on August 29, 2024 and sell it today you would earn a total of 44.00 from holding Haima Automobile Group or generate 11.03% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Haima Automobile |
| Jiangsu Xinri E |
Haima Automobile and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Jiangsu Xinri
The main advantage of trading using opposite Haima Automobile and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. China Longyuan Power | Haima Automobile vs. Changshu Tongrun Auto | Haima Automobile vs. PetroChina Co Ltd |
| Jiangsu Xinri vs. Shenzhen MYS Environmental | Jiangsu Xinri vs. AVIC Fund Management | Jiangsu Xinri vs. Shenzhen Bingchuan Network | Jiangsu Xinri vs. Penghua Shenzhen Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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