Correlation Between Guangdong Transtek and Haima Automobile
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By analyzing existing cross correlation between Guangdong Transtek Medical and Haima Automobile Group, you can compare the effects of market volatilities on Guangdong Transtek 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 Transtek with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and Haima Automobile.
Diversification Opportunities for Guangdong Transtek and Haima Automobile
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Haima is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical 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 Transtek 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 Transtek Medical 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 Transtek i.e., Guangdong Transtek and Haima Automobile go up and down completely randomly.
Pair Corralation between Guangdong Transtek and Haima Automobile
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to under-perform the Haima Automobile. In addition to that, Guangdong Transtek is 1.35 times more volatile than Haima Automobile Group. It trades about -0.32 of its total potential returns per unit of risk. Haima Automobile Group is currently generating about -0.17 per unit of volatility. If you would invest 430.00 in Haima Automobile Group on October 30, 2024 and sell it today you would lose (36.00) from holding Haima Automobile Group or give up 8.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. Haima Automobile Group
Performance |
| Timeline |
| Guangdong Transtek |
| Haima Automobile |
Guangdong Transtek and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and Haima Automobile
The main advantage of trading using opposite Guangdong Transtek and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek 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 Transtek vs. Agricultural Bank of | Guangdong Transtek vs. Industrial and Commercial | Guangdong Transtek vs. Bank of China | Guangdong Transtek vs. China Construction Bank |
| Haima Automobile vs. Hengli Industrial Development | Haima Automobile vs. Pengxin International Mining | Haima Automobile vs. China National Software | Haima Automobile vs. Suzhou Industrial Park |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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