Correlation Between Beijing Venustech and Haima Automobile
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By analyzing existing cross correlation between Beijing Venustech and Haima Automobile Group, you can compare the effects of market volatilities on Beijing Venustech 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 Beijing Venustech with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Venustech and Haima Automobile.
Diversification Opportunities for Beijing Venustech and Haima Automobile
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Haima is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Venustech and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Beijing Venustech 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 Beijing Venustech 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 Beijing Venustech i.e., Beijing Venustech and Haima Automobile go up and down completely randomly.
Pair Corralation between Beijing Venustech and Haima Automobile
Assuming the 90 days trading horizon Beijing Venustech is expected to generate 0.76 times more return on investment than Haima Automobile. However, Beijing Venustech is 1.32 times less risky than Haima Automobile. It trades about -0.36 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.36 per unit of risk. If you would invest 1,702 in Beijing Venustech on October 9, 2024 and sell it today you would lose (254.00) from holding Beijing Venustech or give up 14.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Venustech vs. Haima Automobile Group
Performance |
Timeline |
Beijing Venustech |
Haima Automobile |
Beijing Venustech and Haima Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Venustech and Haima Automobile
The main advantage of trading using opposite Beijing Venustech and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Venustech 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.Beijing Venustech vs. Chengdu Kanghua Biological | Beijing Venustech vs. Beijing Wantai Biological | Beijing Venustech vs. Aluminum Corp of | Beijing Venustech vs. COL Digital Publishing |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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