Correlation Between Haima Automobile and Hygon Information
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By analyzing existing cross correlation between Haima Automobile Group and Hygon Information Technology, you can compare the effects of market volatilities on Haima Automobile and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Hygon Information.
Diversification Opportunities for Haima Automobile and Hygon Information
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haima and Hygon is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Haima Automobile i.e., Haima Automobile and Hygon Information go up and down completely randomly.
Pair Corralation between Haima Automobile and Hygon Information
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Hygon Information. But the stock apears to be less risky and, when comparing its historical volatility, Haima Automobile Group is 1.17 times less risky than Hygon Information. The stock trades about -0.09 of its potential returns per unit of risk. The Hygon Information Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12,581 in Hygon Information Technology on October 30, 2024 and sell it today you would earn a total of 219.00 from holding Hygon Information Technology or generate 1.74% 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. Hygon Information Technology
Performance |
| Timeline |
| Haima Automobile |
| Hygon Information |
Haima Automobile and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Hygon Information
The main advantage of trading using opposite Haima Automobile and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Haima Automobile vs. Hengli Industrial Development | Haima Automobile vs. Pengxin International Mining | Haima Automobile vs. China National Software | Haima Automobile vs. Suzhou Industrial Park |
| Hygon Information vs. Agricultural Bank of | Hygon Information vs. Industrial and Commercial | Hygon Information vs. Bank of China | Hygon Information vs. China Construction Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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