Correlation Between Tongling Nonferrous and Haima Automobile
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By analyzing existing cross correlation between Tongling Nonferrous Metals and Haima Automobile Group, you can compare the effects of market volatilities on Tongling Nonferrous and Haima Automobile 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 Tongling Nonferrous with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Haima Automobile.
Diversification Opportunities for Tongling Nonferrous and Haima Automobile
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tongling and Haima is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Tongling Nonferrous 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 Tongling Nonferrous Metals are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Tongling Nonferrous i.e., Tongling Nonferrous and Haima Automobile go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Haima Automobile
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to generate 0.36 times more return on investment than Haima Automobile. However, Tongling Nonferrous Metals is 2.79 times less risky than Haima Automobile. It trades about -0.31 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.36 per unit of risk. If you would invest 345.00 in Tongling Nonferrous Metals on October 14, 2024 and sell it today you would lose (23.00) from holding Tongling Nonferrous Metals or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. Haima Automobile Group
Performance |
| Timeline |
| Tongling Nonferrous |
| Haima Automobile |
Tongling Nonferrous and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Haima Automobile
The main advantage of trading using opposite Tongling Nonferrous and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Tongling Nonferrous vs. PKU HealthCare Corp | Tongling Nonferrous vs. Sanbo Hospital Management | Tongling Nonferrous vs. Healthcare Co | Tongling Nonferrous vs. Mingchen Health Co |
| Haima Automobile vs. Hangzhou Gisway Information | Haima Automobile vs. Heilongjiang Publishing Media | Haima Automobile vs. AVCON Information Tech | Haima Automobile vs. Shenzhen SDG Information |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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