Correlation Between Sinomach Automobile and Hainan Haiqi
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By analyzing existing cross correlation between Sinomach Automobile Co and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Sinomach Automobile and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Hainan Haiqi.
Diversification Opportunities for Sinomach Automobile and Hainan Haiqi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Hainan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Hainan Haiqi
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Hainan Haiqi. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.38 times less risky than Hainan Haiqi. The stock trades about -0.04 of its potential returns per unit of risk. The Hainan Haiqi Transportation is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,968 in Hainan Haiqi Transportation on August 29, 2024 and sell it today you would lose (52.00) from holding Hainan Haiqi Transportation or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Sinomach Automobile |
| Hainan Haiqi Transpo |
Sinomach Automobile and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Hainan Haiqi
The main advantage of trading using opposite Sinomach Automobile and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
| Hainan Haiqi vs. Cambricon Technologies Corp | Hainan Haiqi vs. Loongson Technology Corp | Hainan Haiqi vs. Chongqing Road Bridge | Hainan Haiqi vs. Shenzhen Fortune Trend |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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