Correlation Between Zhengzhou Qianweiyangchu and Haima Automobile
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By analyzing existing cross correlation between Zhengzhou Qianweiyangchu Food and Haima Automobile Group, you can compare the effects of market volatilities on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Qianweiyangchu and Haima Automobile.
Diversification Opportunities for Zhengzhou Qianweiyangchu and Haima Automobile
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhengzhou and Haima is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Qianweiyangchu Food and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu Food 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 Zhengzhou Qianweiyangchu i.e., Zhengzhou Qianweiyangchu and Haima Automobile go up and down completely randomly.
Pair Corralation between Zhengzhou Qianweiyangchu and Haima Automobile
Assuming the 90 days trading horizon Zhengzhou Qianweiyangchu Food is expected to generate 0.68 times more return on investment than Haima Automobile. However, Zhengzhou Qianweiyangchu Food is 1.47 times less risky than Haima Automobile. It trades about 0.2 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.03 per unit of risk. If you would invest 3,030 in Zhengzhou Qianweiyangchu Food on August 30, 2024 and sell it today you would earn a total of 547.00 from holding Zhengzhou Qianweiyangchu Food or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Qianweiyangchu Food vs. Haima Automobile Group
Performance |
| Timeline |
| Zhengzhou Qianweiyangchu |
| Haima Automobile |
Zhengzhou Qianweiyangchu and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Qianweiyangchu and Haima Automobile
The main advantage of trading using opposite Zhengzhou Qianweiyangchu and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Qianweiyangchu 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.| Zhengzhou Qianweiyangchu vs. Industrial and Commercial | Zhengzhou Qianweiyangchu vs. China Construction Bank | Zhengzhou Qianweiyangchu vs. Agricultural Bank of | Zhengzhou Qianweiyangchu vs. Bank of China |
| Haima Automobile vs. Tongyu Communication | Haima Automobile vs. Zhongtong Guomai Communication | Haima Automobile vs. Oppein Home Group | Haima Automobile vs. Der International Home |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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