Correlation Between Liaoning Dingjide and Haima Automobile
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By analyzing existing cross correlation between Liaoning Dingjide Petrochemical and Haima Automobile Group, you can compare the effects of market volatilities on Liaoning Dingjide 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 Liaoning Dingjide with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Dingjide and Haima Automobile.
Diversification Opportunities for Liaoning Dingjide and Haima Automobile
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Liaoning and Haima is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Dingjide Petrochemica and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Liaoning Dingjide 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 Liaoning Dingjide Petrochemical 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 Liaoning Dingjide i.e., Liaoning Dingjide and Haima Automobile go up and down completely randomly.
Pair Corralation between Liaoning Dingjide and Haima Automobile
Assuming the 90 days trading horizon Liaoning Dingjide Petrochemical is expected to generate 1.26 times more return on investment than Haima Automobile. However, Liaoning Dingjide is 1.26 times more volatile than Haima Automobile Group. It trades about 0.0 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 3,298 in Liaoning Dingjide Petrochemical on October 14, 2024 and sell it today you would lose (36.00) from holding Liaoning Dingjide Petrochemical or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Dingjide Petrochemica vs. Haima Automobile Group
Performance |
| Timeline |
| Liaoning Dingjide |
| Haima Automobile |
Liaoning Dingjide and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Dingjide and Haima Automobile
The main advantage of trading using opposite Liaoning Dingjide and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Dingjide 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.| Liaoning Dingjide vs. Hengkang Medical Group | Liaoning Dingjide vs. Hainan Haiqi Transportation | Liaoning Dingjide vs. CareRay Digital Medical | Liaoning Dingjide vs. Allmed Medical Products |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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