Correlation Between Jinlong Machinery and Haima Automobile
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Haima Automobile Group, you can compare the effects of market volatilities on Jinlong Machinery 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 Jinlong Machinery with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Haima Automobile.
Diversification Opportunities for Jinlong Machinery and Haima Automobile
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinlong and Haima is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Jinlong Machinery 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 Jinlong Machinery Electronic 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 Jinlong Machinery i.e., Jinlong Machinery and Haima Automobile go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Haima Automobile
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Haima Automobile. In addition to that, Jinlong Machinery is 1.33 times more volatile than Haima Automobile Group. It trades about -0.27 of its total potential returns per unit of risk. Haima Automobile Group is currently generating about -0.29 per unit of volatility. If you would invest 485.00 in Haima Automobile Group on October 11, 2024 and sell it today you would lose (83.00) from holding Haima Automobile Group or give up 17.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Haima Automobile Group
Performance |
| Timeline |
| Jinlong Machinery |
| Haima Automobile |
Jinlong Machinery and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Haima Automobile
The main advantage of trading using opposite Jinlong Machinery and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery 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.| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
| Haima Automobile vs. Porton Fine Chemicals | Haima Automobile vs. Techshine Electronics Co | Haima Automobile vs. Dongguan Tarry Electronics | Haima Automobile vs. Jinlong Machinery Electronic |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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