Correlation Between Shanghai Action and Haima Automobile
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By analyzing existing cross correlation between Shanghai Action Education and Haima Automobile Group, you can compare the effects of market volatilities on Shanghai Action 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 Shanghai Action with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Haima Automobile.
Diversification Opportunities for Shanghai Action and Haima Automobile
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Haima is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Shanghai Action 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 Shanghai Action Education 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 Shanghai Action i.e., Shanghai Action and Haima Automobile go up and down completely randomly.
Pair Corralation between Shanghai Action and Haima Automobile
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 0.77 times more return on investment than Haima Automobile. However, Shanghai Action Education is 1.3 times less risky than Haima Automobile. It trades about 0.03 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.0 per unit of risk. If you would invest 2,893 in Shanghai Action Education on October 18, 2024 and sell it today you would earn a total of 658.00 from holding Shanghai Action Education or generate 22.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shanghai Action Education vs. Haima Automobile Group
Performance |
| Timeline |
| Shanghai Action Education |
| Haima Automobile |
Shanghai Action and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Haima Automobile
The main advantage of trading using opposite Shanghai Action and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action 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.| Shanghai Action vs. JiShi Media Co | Shanghai Action vs. Guangzhou Jinyi Media | Shanghai Action vs. Jiugui Liquor Co | Shanghai Action vs. Sino Platinum Metals Co |
| Haima Automobile vs. Duzhe Publishing Media | Haima Automobile vs. China Building Material | Haima Automobile vs. Orinko Advanced Plastics | Haima Automobile vs. Shanghai Action Education |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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