Correlation Between Haima Automobile and Shanghai Bailian
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By analyzing existing cross correlation between Haima Automobile Group and Shanghai Bailian Group, you can compare the effects of market volatilities on Haima Automobile and Shanghai Bailian 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 Shanghai Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Shanghai Bailian.
Diversification Opportunities for Haima Automobile and Shanghai Bailian
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Haima and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Shanghai Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Haima Automobile i.e., Haima Automobile and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Haima Automobile and Shanghai Bailian
Assuming the 90 days trading horizon Haima Automobile Group is expected to under-perform the Shanghai Bailian. In addition to that, Haima Automobile is 2.02 times more volatile than Shanghai Bailian Group. It trades about -0.08 of its total potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.21 per unit of volatility. If you would invest 69.00 in Shanghai Bailian Group on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Shanghai Bailian Group or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Shanghai Bailian Group
Performance |
| Timeline |
| Haima Automobile |
| Shanghai Bailian |
Haima Automobile and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Shanghai Bailian
The main advantage of trading using opposite Haima Automobile and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Shanghai Bailian 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 Shanghai Bailian will offset losses from the drop in Shanghai Bailian's long position.| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Bank of China | Haima Automobile vs. Gansu Jiu Steel |
| Shanghai Bailian vs. Jinhui Mining Co | Shanghai Bailian vs. Uroica Mining Safety | Shanghai Bailian vs. Guangdong Marubi Biotechnology | Shanghai Bailian vs. Shenzhen Bioeasy Biotechnology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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