Correlation Between Aba Chemicals and Haima Automobile
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By analyzing existing cross correlation between Aba Chemicals Corp and Haima Automobile Group, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Haima Automobile.
Diversification Opportunities for Aba Chemicals and Haima Automobile
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aba and Haima is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Haima Automobile go up and down completely randomly.
Pair Corralation between Aba Chemicals and Haima Automobile
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.02 times less risky than Haima Automobile. The stock trades about -0.02 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 505.00 in Haima Automobile Group on October 16, 2024 and sell it today you would lose (124.00) from holding Haima Automobile Group or give up 24.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Haima Automobile Group
Performance |
| Timeline |
| Aba Chemicals Corp |
| Haima Automobile |
Aba Chemicals and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Haima Automobile
The main advantage of trading using opposite Aba Chemicals and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Tongyu Communication | Aba Chemicals vs. Ningbo Homelink Eco iTech | Aba Chemicals vs. UE Furniture Co | Aba Chemicals vs. Peoples Insurance of |
| Haima Automobile vs. Dezhan HealthCare Co | Haima Automobile vs. YiDong Electronics Technology | Haima Automobile vs. China Reform Health | Haima Automobile vs. Meinian Onehealth Healthcare |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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