Correlation Between Guangdong Jingyi and Haima Automobile
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Haima Automobile Group, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Haima Automobile.
Diversification Opportunities for Guangdong Jingyi and Haima Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Haima is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Haima Automobile go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Haima Automobile
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.33 times more return on investment than Haima Automobile. However, Guangdong Jingyi Metal is 3.02 times less risky than Haima Automobile. It trades about 0.09 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.02 per unit of risk. If you would invest 727.00 in Guangdong Jingyi Metal on September 4, 2024 and sell it today you would earn a total of 22.00 from holding Guangdong Jingyi Metal or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Haima Automobile Group
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Haima Automobile |
Guangdong Jingyi and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Haima Automobile
The main advantage of trading using opposite Guangdong Jingyi and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff Co |
| Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank | Haima Automobile vs. Agricultural Bank of | Haima Automobile vs. Bank of China |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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