Correlation Between Haima Automobile and Kunshan Guoli
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By analyzing existing cross correlation between Haima Automobile Group and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Haima Automobile and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Kunshan Guoli.
Diversification Opportunities for Haima Automobile and Kunshan Guoli
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Kunshan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Haima Automobile i.e., Haima Automobile and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Haima Automobile and Kunshan Guoli
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 0.99 times more return on investment than Kunshan Guoli. However, Haima Automobile Group is 1.01 times less risky than Kunshan Guoli. It trades about 0.01 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.01 per unit of risk. If you would invest 494.00 in Haima Automobile Group on August 31, 2024 and sell it today you would lose (50.00) from holding Haima Automobile Group or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Haima Automobile |
| Kunshan Guoli Electronic |
Haima Automobile and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Kunshan Guoli
The main advantage of trading using opposite Haima Automobile and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Haima Automobile vs. China State Construction | Haima Automobile vs. China Merchants Shekou | Haima Automobile vs. Huafa Industrial Co | Haima Automobile vs. China International Capital |
| Kunshan Guoli vs. Xingguang Agricultural Mach | Kunshan Guoli vs. Henzhen Zhaowei Machinery | Kunshan Guoli vs. Guizhou Chanhen Chemical | Kunshan Guoli vs. Sinomach General Machinery |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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