Correlation Between Haima Automobile and Science Environmental

Can any of the company-specific risk be diversified away by investing in both Haima Automobile and Science Environmental at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Haima Automobile and Science Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Haima Automobile Group and Science Environmental Protection, you can compare the effects of market volatilities on Haima Automobile and Science Environmental 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 Science Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Science Environmental.

Diversification Opportunities for Haima Automobile and Science Environmental

0.0

Correlation Coefficient

Haima Automobile  Science Environmental

Pay attention - limited upside

The 3 months correlation between Haima and Science is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Science Environmental Protecti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Environmental 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 Science Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Environmental has no effect on the direction of Haima Automobile i.e., Haima Automobile and Science Environmental go up and down completely randomly.

Pair Corralation between Haima Automobile and Science Environmental

If you would invest  0.00  in Science Environmental Protection on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Science Environmental Protection or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Haima Automobile Group  vs.  Science Environmental Protecti

Haima Automobile

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Haima Automobile Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Haima Automobile sustained solid returns over the last few months and may actually be approaching a breakup point.

Science Environmental

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Science Environmental Protection has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Science Environmental is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Haima Automobile and Science Environmental

The main advantage of trading using opposite Haima Automobile and Science Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Science Environmental 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 Science Environmental will offset losses from the drop in Science Environmental's long position.

The idea behind Haima Automobile Group and Science Environmental Protection pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.