Correlation Between Kunshan Guoli and Haima Automobile
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Haima Automobile Group, you can compare the effects of market volatilities on Kunshan Guoli 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 Kunshan Guoli with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Haima Automobile.
Diversification Opportunities for Kunshan Guoli and Haima Automobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunshan and Haima is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Kunshan Guoli 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 Kunshan Guoli Electronic 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 Kunshan Guoli i.e., Kunshan Guoli and Haima Automobile go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Haima Automobile
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Haima Automobile. In addition to that, Kunshan Guoli is 1.01 times more volatile than Haima Automobile Group. It trades about -0.01 of its total potential returns per unit of risk. Haima Automobile Group is currently generating about 0.01 per unit of volatility. If you would invest 494.00 in Haima Automobile Group on August 31, 2024 and sell it today you would lose (50.00) from holding Haima Automobile Group or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Haima Automobile Group
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Haima Automobile |
Kunshan Guoli and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Haima Automobile
The main advantage of trading using opposite Kunshan Guoli and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli 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.| Kunshan Guoli vs. Xingguang Agricultural Mach | Kunshan Guoli vs. Henzhen Zhaowei Machinery | Kunshan Guoli vs. Guizhou Chanhen Chemical | Kunshan Guoli vs. Sinomach General Machinery |
| Haima Automobile vs. China State Construction | Haima Automobile vs. China Merchants Shekou | Haima Automobile vs. Huafa Industrial Co | Haima Automobile vs. China International Capital |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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