Correlation Between Haima Automobile and Eastroc Beverage
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By analyzing existing cross correlation between Haima Automobile Group and Eastroc Beverage Group, you can compare the effects of market volatilities on Haima Automobile and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Eastroc Beverage.
Diversification Opportunities for Haima Automobile and Eastroc Beverage
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haima and Eastroc is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Haima Automobile i.e., Haima Automobile and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Haima Automobile and Eastroc Beverage
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Eastroc Beverage. In addition to that, Haima Automobile is 1.92 times more volatile than Eastroc Beverage Group. It trades about -0.36 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.31 per unit of volatility. If you would invest 25,127 in Eastroc Beverage Group on October 14, 2024 and sell it today you would earn a total of 2,569 from holding Eastroc Beverage Group or generate 10.22% 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. Eastroc Beverage Group
Performance |
| Timeline |
| Haima Automobile |
| Eastroc Beverage |
Haima Automobile and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Eastroc Beverage
The main advantage of trading using opposite Haima Automobile and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Haima Automobile vs. Hangzhou Gisway Information | Haima Automobile vs. Heilongjiang Publishing Media | Haima Automobile vs. AVCON Information Tech | Haima Automobile vs. Shenzhen SDG Information |
| Eastroc Beverage vs. Hunan Mendale Hometextile | Eastroc Beverage vs. Qumei Furniture Group | Eastroc Beverage vs. DO Home Collection | Eastroc Beverage vs. Luolai Home Textile |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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