Correlation Between Jiangsu Xinri and Haima Automobile
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Haima Automobile Group, you can compare the effects of market volatilities on Jiangsu Xinri 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 Jiangsu Xinri with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Haima Automobile.
Diversification Opportunities for Jiangsu Xinri and Haima Automobile
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Haima is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Jiangsu Xinri 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 Jiangsu Xinri E Vehicle 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 Jiangsu Xinri i.e., Jiangsu Xinri and Haima Automobile go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Haima Automobile
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Xinri E Vehicle is 1.28 times less risky than Haima Automobile. The stock trades about -0.04 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 527.00 in Haima Automobile Group on August 25, 2024 and sell it today you would lose (83.00) from holding Haima Automobile Group or give up 15.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Haima Automobile Group
Performance |
| Timeline |
| Jiangsu Xinri E |
| Haima Automobile |
Jiangsu Xinri and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Haima Automobile
The main advantage of trading using opposite Jiangsu Xinri and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri 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.| Jiangsu Xinri vs. Shenzhen MYS Environmental | Jiangsu Xinri vs. AVIC Fund Management | Jiangsu Xinri vs. Shenzhen Bingchuan Network | Jiangsu Xinri vs. Penghua Shenzhen Energy |
| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. China Longyuan Power | Haima Automobile vs. Changshu Tongrun Auto | Haima Automobile vs. PetroChina Co Ltd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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