Correlation Between Haima Automobile and Ningbo Jianan
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By analyzing existing cross correlation between Haima Automobile Group and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Haima Automobile and Ningbo Jianan 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 Haima Automobile with a short position of Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Ningbo Jianan.
Diversification Opportunities for Haima Automobile and Ningbo Jianan
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Ningbo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics and Haima Automobile 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 Haima Automobile Group are associated (or correlated) with Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Haima Automobile i.e., Haima Automobile and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Haima Automobile and Ningbo Jianan
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.09 times more return on investment than Ningbo Jianan. However, Haima Automobile is 1.09 times more volatile than Ningbo Jianan Electronics. It trades about 0.14 of its potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about 0.1 per unit of risk. If you would invest 319.00 in Haima Automobile Group on September 25, 2024 and sell it today you would earn a total of 122.00 from holding Haima Automobile Group or generate 38.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Haima Automobile Group vs. Ningbo Jianan Electronics
Performance |
Timeline |
Haima Automobile |
Ningbo Jianan Electronics |
Haima Automobile and Ningbo Jianan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Haima Automobile and Ningbo Jianan
The main advantage of trading using opposite Haima Automobile and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Ningbo Jianan 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 Ningbo Jianan will offset losses from the drop in Ningbo Jianan's long position.Haima Automobile vs. New China Life | Haima Automobile vs. Ming Yang Smart | Haima Automobile vs. 159681 | Haima Automobile vs. 159005 |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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