Correlation Between Guangzhou Automobile and Hainan Haiqi
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By analyzing existing cross correlation between Guangzhou Automobile Group and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Guangzhou 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 Guangzhou Automobile with a short position of Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Hainan Haiqi.
Diversification Opportunities for Guangzhou Automobile and Hainan Haiqi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Hainan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group 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 Guangzhou 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 Guangzhou Automobile Group 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 Guangzhou Automobile i.e., Guangzhou Automobile and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Hainan Haiqi
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to generate 0.61 times more return on investment than Hainan Haiqi. However, Guangzhou Automobile Group is 1.65 times less risky than Hainan Haiqi. It trades about -0.01 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.01 per unit of risk. If you would invest 1,117 in Guangzhou Automobile Group on September 14, 2024 and sell it today you would lose (131.00) from holding Guangzhou Automobile Group or give up 11.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Guangzhou Automobile |
| Hainan Haiqi Transpo |
Guangzhou Automobile and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Hainan Haiqi
The main advantage of trading using opposite Guangzhou Automobile and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou 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.| Guangzhou Automobile vs. Henan Shuanghui Investment | Guangzhou Automobile vs. Hunan Investment Group | Guangzhou Automobile vs. Kunwu Jiuding Investment | Guangzhou Automobile vs. Harvest Fund Management |
| Hainan Haiqi vs. Ming Yang Smart | Hainan Haiqi vs. 159681 | Hainan Haiqi vs. 159005 | Hainan Haiqi vs. Loctek Ergonomic Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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