Correlation Between EmbedWay TechCorp and Haima Automobile
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By analyzing existing cross correlation between EmbedWay TechCorp and Haima Automobile Group, you can compare the effects of market volatilities on EmbedWay TechCorp 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 EmbedWay TechCorp with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of EmbedWay TechCorp and Haima Automobile.
Diversification Opportunities for EmbedWay TechCorp and Haima Automobile
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EmbedWay and Haima is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding EmbedWay TechCorp and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and EmbedWay TechCorp 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 EmbedWay TechCorp 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 EmbedWay TechCorp i.e., EmbedWay TechCorp and Haima Automobile go up and down completely randomly.
Pair Corralation between EmbedWay TechCorp and Haima Automobile
Assuming the 90 days trading horizon EmbedWay TechCorp is expected to generate 1.28 times more return on investment than Haima Automobile. However, EmbedWay TechCorp is 1.28 times more volatile than Haima Automobile Group. It trades about -0.03 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.34 per unit of risk. If you would invest 2,484 in EmbedWay TechCorp on October 17, 2024 and sell it today you would lose (89.00) from holding EmbedWay TechCorp or give up 3.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
EmbedWay TechCorp vs. Haima Automobile Group
Performance |
| Timeline |
| EmbedWay TechCorp |
| Haima Automobile |
EmbedWay TechCorp and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EmbedWay TechCorp and Haima Automobile
The main advantage of trading using opposite EmbedWay TechCorp and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EmbedWay TechCorp 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.| EmbedWay TechCorp vs. Kweichow Moutai Co | EmbedWay TechCorp vs. NAURA Technology Group | EmbedWay TechCorp vs. Zhejiang Orient Gene | EmbedWay TechCorp vs. APT Medical |
| Haima Automobile vs. Jonjee Hi tech Industrial | Haima Automobile vs. Tongyu Communication | Haima Automobile vs. JCHX Mining Management | Haima Automobile vs. Jiangxi Naipu Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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