Correlation Between Beijing Jiaman and Haima Automobile
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By analyzing existing cross correlation between Beijing Jiaman Dress and Haima Automobile Group, you can compare the effects of market volatilities on Beijing Jiaman 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 Beijing Jiaman with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Haima Automobile.
Diversification Opportunities for Beijing Jiaman and Haima Automobile
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Haima is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Beijing Jiaman 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 Beijing Jiaman Dress 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 Beijing Jiaman i.e., Beijing Jiaman and Haima Automobile go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Haima Automobile
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to generate 0.84 times more return on investment than Haima Automobile. However, Beijing Jiaman Dress is 1.19 times less risky than Haima Automobile. It trades about -0.29 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.36 per unit of risk. If you would invest 2,237 in Beijing Jiaman Dress on October 14, 2024 and sell it today you would lose (326.00) from holding Beijing Jiaman Dress or give up 14.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Haima Automobile Group
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Haima Automobile |
Beijing Jiaman and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Haima Automobile
The main advantage of trading using opposite Beijing Jiaman and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman 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.| Beijing Jiaman vs. Jiangxi Naipu Mining | Beijing Jiaman vs. Uroica Mining Safety | Beijing Jiaman vs. Pengxin International Mining | Beijing Jiaman vs. XinJiang GuoTong Pipeline |
| Haima Automobile vs. Hangzhou Gisway Information | Haima Automobile vs. Heilongjiang Publishing Media | Haima Automobile vs. AVCON Information Tech | Haima Automobile vs. Shenzhen SDG Information |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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