Correlation Between Sinomach Automobile and Haima Automobile
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By analyzing existing cross correlation between Sinomach Automobile Co and Haima Automobile Group, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Haima Automobile.
Diversification Opportunities for Sinomach Automobile and Haima Automobile
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Haima is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile 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 Sinomach Automobile 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 Sinomach Automobile 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 Sinomach Automobile i.e., Sinomach Automobile and Haima Automobile go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Haima Automobile
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.12 times less risky than Haima Automobile. The stock trades about 0.0 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 527.00 in Haima Automobile Group on August 25, 2024 and sell it today you would lose (83.00) from holding Haima Automobile Group or give up 15.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Haima Automobile Group
Performance |
| Timeline |
| Sinomach Automobile |
| Haima Automobile |
Sinomach Automobile and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Haima Automobile
The main advantage of trading using opposite Sinomach Automobile and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD Co Ltd |
| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. China Longyuan Power | Haima Automobile vs. Changshu Tongrun Auto | Haima Automobile vs. PetroChina Co Ltd |
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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