Correlation Between Wuhan Yangtze and Haima Automobile
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Haima Automobile Group, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Haima Automobile.
Diversification Opportunities for Wuhan Yangtze and Haima Automobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Haima is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Haima Automobile go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Haima Automobile
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.67 times more return on investment than Haima Automobile. However, Wuhan Yangtze is 1.67 times more volatile than Haima Automobile Group. It trades about 0.22 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.13 per unit of risk. If you would invest 2,062 in Wuhan Yangtze Communication on December 11, 2024 and sell it today you would earn a total of 609.00 from holding Wuhan Yangtze Communication or generate 29.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Haima Automobile Group
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Haima Automobile |
Wuhan Yangtze and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Haima Automobile
The main advantage of trading using opposite Wuhan Yangtze and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Panda Dairy Corp | Wuhan Yangtze vs. Anji Foodstuff Co | Wuhan Yangtze vs. Shantou Wanshun Package | Wuhan Yangtze vs. Hongrun Construction Group |
| Haima Automobile vs. Beijing Mainstreets Investment | Haima Automobile vs. Fujian Newland Computer | Haima Automobile vs. Strait Innovation Internet | Haima Automobile vs. Soyea Technology Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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