Correlation Between Haima Automobile and Dazhong Transportation
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By analyzing existing cross correlation between Haima Automobile Group and Dazhong Transportation Group, you can compare the effects of market volatilities on Haima Automobile and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Dazhong Transportation.
Diversification Opportunities for Haima Automobile and Dazhong Transportation
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Dazhong is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Haima Automobile i.e., Haima Automobile and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Haima Automobile and Dazhong Transportation
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Dazhong Transportation. In addition to that, Haima Automobile is 1.34 times more volatile than Dazhong Transportation Group. It trades about -0.29 of its total potential returns per unit of risk. Dazhong Transportation Group is currently generating about -0.35 per unit of volatility. If you would invest 26.00 in Dazhong Transportation Group on October 11, 2024 and sell it today you would lose (4.00) from holding Dazhong Transportation Group or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Dazhong Transportation Group
Performance |
| Timeline |
| Haima Automobile |
| Dazhong Transportation |
Haima Automobile and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Dazhong Transportation
The main advantage of trading using opposite Haima Automobile and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Haima Automobile vs. Porton Fine Chemicals | Haima Automobile vs. Techshine Electronics Co | Haima Automobile vs. Dongguan Tarry Electronics | Haima Automobile vs. Jinlong Machinery Electronic |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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