Correlation Between Haima Automobile and Allied Machinery
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By analyzing existing cross correlation between Haima Automobile Group and Allied Machinery Co, you can compare the effects of market volatilities on Haima Automobile and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Allied Machinery.
Diversification Opportunities for Haima Automobile and Allied Machinery
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Allied is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Haima Automobile i.e., Haima Automobile and Allied Machinery go up and down completely randomly.
Pair Corralation between Haima Automobile and Allied Machinery
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.54 times more return on investment than Allied Machinery. However, Haima Automobile is 1.54 times more volatile than Allied Machinery Co. It trades about 0.2 of its potential returns per unit of risk. Allied Machinery Co is currently generating about 0.22 per unit of risk. If you would invest 305.00 in Haima Automobile Group on September 12, 2024 and sell it today you would earn a total of 180.00 from holding Haima Automobile Group or generate 59.02% 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. Allied Machinery Co
Performance |
| Timeline |
| Haima Automobile |
| Allied Machinery |
Haima Automobile and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Allied Machinery
The main advantage of trading using opposite Haima Automobile and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Bank of China | Haima Automobile vs. Gansu Jiu Steel |
| Allied Machinery vs. Peoples Insurance of | Allied Machinery vs. Nanxing Furniture Machinery | Allied Machinery vs. Oppein Home Group | Allied Machinery vs. Bus Online 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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