Correlation Between Oppein Home and Haima Automobile
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By analyzing existing cross correlation between Oppein Home Group and Haima Automobile Group, you can compare the effects of market volatilities on Oppein Home 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 Oppein Home with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Haima Automobile.
Diversification Opportunities for Oppein Home and Haima Automobile
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppein and Haima is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Oppein Home 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 Oppein Home Group 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 Oppein Home i.e., Oppein Home and Haima Automobile go up and down completely randomly.
Pair Corralation between Oppein Home and Haima Automobile
Assuming the 90 days trading horizon Oppein Home Group is expected to under-perform the Haima Automobile. In addition to that, Oppein Home is 1.45 times more volatile than Haima Automobile Group. It trades about -0.06 of its total potential returns per unit of risk. Haima Automobile Group is currently generating about 0.22 per unit of volatility. If you would invest 400.00 in Haima Automobile Group on November 29, 2024 and sell it today you would earn a total of 27.00 from holding Haima Automobile Group or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppein Home Group vs. Haima Automobile Group
Performance |
| Timeline |
| Oppein Home Group |
| Haima Automobile |
Oppein Home and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Haima Automobile
The main advantage of trading using opposite Oppein Home and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home 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.| Oppein Home vs. Jointo Energy Investment | Oppein Home vs. Kunshan Guoli Electronic | Oppein Home vs. Shanghai Jinfeng Wine | Oppein Home vs. Jiangsu Financial Leasing |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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