Correlation Between Haima Automobile and Ningbo Tip
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By analyzing existing cross correlation between Haima Automobile Group and Ningbo Tip Rubber, you can compare the effects of market volatilities on Haima Automobile and Ningbo Tip 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 Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Ningbo Tip.
Diversification Opportunities for Haima Automobile and Ningbo Tip
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haima and Ningbo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber 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 Ningbo Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of Haima Automobile i.e., Haima Automobile and Ningbo Tip go up and down completely randomly.
Pair Corralation between Haima Automobile and Ningbo Tip
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.23 times more return on investment than Ningbo Tip. However, Haima Automobile is 1.23 times more volatile than Ningbo Tip Rubber. It trades about 0.05 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.05 per unit of risk. If you would invest 348.00 in Haima Automobile Group on November 3, 2024 and sell it today you would earn a total of 46.00 from holding Haima Automobile Group or generate 13.22% 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. Ningbo Tip Rubber
Performance |
| Timeline |
| Haima Automobile |
| Ningbo Tip Rubber |
Haima Automobile and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Ningbo Tip
The main advantage of trading using opposite Haima Automobile and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Ningbo Tip 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 Ningbo Tip will offset losses from the drop in Ningbo Tip's long position.| Haima Automobile vs. China Life Insurance | Haima Automobile vs. National Silicon Industry | Haima Automobile vs. Shanghai OPM Biosciences | Haima Automobile vs. Nanhua Bio Medicine |
| Ningbo Tip vs. China Life Insurance | Ningbo Tip vs. National Silicon Industry | Ningbo Tip vs. Shanghai OPM Biosciences | Ningbo Tip vs. Nanhua Bio Medicine |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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