Correlation Between CIMC Vehicles and Haima Automobile
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By analyzing existing cross correlation between CIMC Vehicles Co and Haima Automobile Group, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Haima Automobile.
Diversification Opportunities for CIMC Vehicles and Haima Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CIMC and Haima is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and CIMC Vehicles 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 CIMC Vehicles Co 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 CIMC Vehicles i.e., CIMC Vehicles and Haima Automobile go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Haima Automobile
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, CIMC Vehicles Co is 1.73 times less risky than Haima Automobile. The stock trades about -0.39 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Haima Automobile Group on November 27, 2024 and sell it today you would earn a total of 14.00 from holding Haima Automobile Group or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Haima Automobile Group
Performance |
| Timeline |
| CIMC Vehicles |
| Haima Automobile |
CIMC Vehicles and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Haima Automobile
The main advantage of trading using opposite CIMC Vehicles and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.| CIMC Vehicles vs. StarPower Semiconductor | CIMC Vehicles vs. Yuanjie Semiconductor Technology | CIMC Vehicles vs. Xiangyang Automobile Bearing | CIMC Vehicles vs. Hubei Tech Semiconductors |
| Haima Automobile vs. Sunwoda Electronic | Haima Automobile vs. Kidswant Children Products | Haima Automobile vs. Techshine Electronics Co | Haima Automobile vs. Sanbo Hospital Management |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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