Correlation Between Zhejiang Yayi and Haima Automobile
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Haima Automobile Group, you can compare the effects of market volatilities on Zhejiang Yayi 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 Zhejiang Yayi with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Haima Automobile.
Diversification Opportunities for Zhejiang Yayi and Haima Automobile
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Haima is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Zhejiang Yayi 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 Zhejiang Yayi Metal 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 Zhejiang Yayi i.e., Zhejiang Yayi and Haima Automobile go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Haima Automobile
Assuming the 90 days trading horizon Zhejiang Yayi is expected to generate 1.07 times less return on investment than Haima Automobile. But when comparing it to its historical volatility, Zhejiang Yayi Metal is 1.32 times less risky than Haima Automobile. It trades about 0.1 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 332.00 in Haima Automobile Group on September 3, 2024 and sell it today you would earn a total of 118.00 from holding Haima Automobile Group or generate 35.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Haima Automobile Group
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Haima Automobile |
Zhejiang Yayi and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Haima Automobile
The main advantage of trading using opposite Zhejiang Yayi and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi 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.| Zhejiang Yayi vs. Ningxia Building Materials | Zhejiang Yayi vs. Super Dragon Engineering Plastics | Zhejiang Yayi vs. Dawning Information Industry | Zhejiang Yayi vs. Xinke Material |
| Haima Automobile vs. Hainan Haiqi Transportation | Haima Automobile vs. Guangdong Brandmax Marketing | Haima Automobile vs. Zhejiang Daily Media | Haima Automobile vs. Heilongjiang Publishing Media |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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