Correlation Between Xinjiang Zhongtai and Haima Automobile
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By analyzing existing cross correlation between Xinjiang Zhongtai Chemical and Haima Automobile Group, you can compare the effects of market volatilities on Xinjiang Zhongtai 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 Xinjiang Zhongtai with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Zhongtai and Haima Automobile.
Diversification Opportunities for Xinjiang Zhongtai and Haima Automobile
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinjiang and Haima is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Zhongtai Chemical and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Xinjiang Zhongtai 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 Xinjiang Zhongtai Chemical 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 Xinjiang Zhongtai i.e., Xinjiang Zhongtai and Haima Automobile go up and down completely randomly.
Pair Corralation between Xinjiang Zhongtai and Haima Automobile
Assuming the 90 days trading horizon Xinjiang Zhongtai Chemical is expected to generate 0.46 times more return on investment than Haima Automobile. However, Xinjiang Zhongtai Chemical is 2.18 times less risky than Haima Automobile. It trades about 0.15 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.05 per unit of risk. If you would invest 338.00 in Xinjiang Zhongtai Chemical on November 3, 2024 and sell it today you would earn a total of 113.00 from holding Xinjiang Zhongtai Chemical or generate 33.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Zhongtai Chemical vs. Haima Automobile Group
Performance |
| Timeline |
| Xinjiang Zhongtai |
| Haima Automobile |
Xinjiang Zhongtai and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Zhongtai and Haima Automobile
The main advantage of trading using opposite Xinjiang Zhongtai and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Zhongtai 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.| Xinjiang Zhongtai vs. Shenwu Energy Saving | Xinjiang Zhongtai vs. Bus Online Co | Xinjiang Zhongtai vs. Jointo Energy Investment | Xinjiang Zhongtai vs. Luyin Investment Group |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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