Correlation Between Haima Automobile and Hangzhou Xili
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By analyzing existing cross correlation between Haima Automobile Group and Hangzhou Xili Intelligent, you can compare the effects of market volatilities on Haima Automobile and Hangzhou Xili 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 Hangzhou Xili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Hangzhou Xili.
Diversification Opportunities for Haima Automobile and Hangzhou Xili
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Hangzhou is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Hangzhou Xili Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Xili Intelligent 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 Hangzhou Xili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Xili Intelligent has no effect on the direction of Haima Automobile i.e., Haima Automobile and Hangzhou Xili go up and down completely randomly.
Pair Corralation between Haima Automobile and Hangzhou Xili
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Hangzhou Xili. In addition to that, Haima Automobile is 1.17 times more volatile than Hangzhou Xili Intelligent. It trades about -0.05 of its total potential returns per unit of risk. Hangzhou Xili Intelligent is currently generating about 0.12 per unit of volatility. If you would invest 1,020 in Hangzhou Xili Intelligent on November 3, 2024 and sell it today you would earn a total of 42.00 from holding Hangzhou Xili Intelligent or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Hangzhou Xili Intelligent
Performance |
| Timeline |
| Haima Automobile |
| Hangzhou Xili Intelligent |
Haima Automobile and Hangzhou Xili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Hangzhou Xili
The main advantage of trading using opposite Haima Automobile and Hangzhou Xili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Hangzhou Xili 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 Hangzhou Xili will offset losses from the drop in Hangzhou Xili's long position.| Haima Automobile vs. HengFeng Information Technology | Haima Automobile vs. Jiamei Food Packaging | Haima Automobile vs. Xiangpiaopiao Food Co | Haima Automobile vs. Sharetronic Data Technology |
| Hangzhou Xili vs. Wuxi Double Elephant | Hangzhou Xili vs. Western Metal Materials | Hangzhou Xili vs. Jahen Household Products | Hangzhou Xili vs. Zhangjiagang Freetrade Science |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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