Correlation Between Suzhou Xingye and Haima Automobile
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By analyzing existing cross correlation between Suzhou Xingye Material and Haima Automobile Group, you can compare the effects of market volatilities on Suzhou Xingye 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 Suzhou Xingye with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Haima Automobile.
Diversification Opportunities for Suzhou Xingye and Haima Automobile
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Haima is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Suzhou Xingye 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 Suzhou Xingye Material 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 Suzhou Xingye i.e., Suzhou Xingye and Haima Automobile go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Haima Automobile
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Xingye Material is 1.23 times less risky than Haima Automobile. The stock trades about -0.01 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 493.00 in Haima Automobile Group on October 11, 2024 and sell it today you would lose (94.00) from holding Haima Automobile Group or give up 19.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Haima Automobile Group
Performance |
| Timeline |
| Suzhou Xingye Material |
| Haima Automobile |
Suzhou Xingye and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Haima Automobile
The main advantage of trading using opposite Suzhou Xingye and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye 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.| Suzhou Xingye vs. Guangzhou Ruoyuchen Information | Suzhou Xingye vs. Dezhan HealthCare Co | Suzhou Xingye vs. Jinxiandai Information Industry | Suzhou Xingye vs. Emdoor Information Co |
| Haima Automobile vs. Suzhou Xingye Material | Haima Automobile vs. Fuda Alloy Materials | Haima Automobile vs. Jiangsu Yanghe Brewery | Haima Automobile vs. Guangdong Qunxing Toys |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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