Correlation Between Jiangsu Xinning and Haima Automobile
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Haima Automobile Group, you can compare the effects of market volatilities on Jiangsu Xinning 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 Jiangsu Xinning with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Haima Automobile.
Diversification Opportunities for Jiangsu Xinning and Haima Automobile
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Haima is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Jiangsu Xinning 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 Jiangsu Xinning Modern 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 Jiangsu Xinning i.e., Jiangsu Xinning and Haima Automobile go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Haima Automobile
Assuming the 90 days trading horizon Jiangsu Xinning is expected to generate 1.36 times less return on investment than Haima Automobile. In addition to that, Jiangsu Xinning is 1.09 times more volatile than Haima Automobile Group. It trades about 0.12 of its total potential returns per unit of risk. Haima Automobile Group is currently generating about 0.18 per unit of volatility. If you would invest 445.00 in Haima Automobile Group on September 19, 2024 and sell it today you would earn a total of 55.00 from holding Haima Automobile Group or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Haima Automobile Group
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Haima Automobile |
Jiangsu Xinning and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Haima Automobile
The main advantage of trading using opposite Jiangsu Xinning and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning 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.| Jiangsu Xinning vs. Cultural Investment Holdings | Jiangsu Xinning vs. Gome Telecom Equipment | Jiangsu Xinning vs. Holitech Technology Co | Jiangsu Xinning vs. Zotye Automobile Co |
| Haima Automobile vs. Semiconductor Manufacturing Electronics | Haima Automobile vs. Cangzhou Mingzhu Plastic | Haima Automobile vs. Dymatic Chemicals | Haima Automobile vs. NBTM New Materials |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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