Correlation Between Shenzhen Dynanonic and Haima Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Dynanonic Co and Haima Automobile Group, you can compare the effects of market volatilities on Shenzhen Dynanonic 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 Shenzhen Dynanonic with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Dynanonic and Haima Automobile.
Diversification Opportunities for Shenzhen Dynanonic and Haima Automobile
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Haima is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Dynanonic Co and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Shenzhen Dynanonic 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 Shenzhen Dynanonic Co 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 Shenzhen Dynanonic i.e., Shenzhen Dynanonic and Haima Automobile go up and down completely randomly.
Pair Corralation between Shenzhen Dynanonic and Haima Automobile
Assuming the 90 days trading horizon Shenzhen Dynanonic Co is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Dynanonic Co is 1.2 times less risky than Haima Automobile. The stock trades about -0.79 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about -0.38 of returns per unit of risk over similar time horizon. If you would invest 484.00 in Haima Automobile Group on October 8, 2024 and sell it today you would lose (97.00) from holding Haima Automobile Group or give up 20.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Dynanonic Co vs. Haima Automobile Group
Performance |
Timeline |
Shenzhen Dynanonic |
Haima Automobile |
Shenzhen Dynanonic and Haima Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Dynanonic and Haima Automobile
The main advantage of trading using opposite Shenzhen Dynanonic and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Dynanonic 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.Shenzhen Dynanonic vs. Dymatic Chemicals | Shenzhen Dynanonic vs. Jahen Household Products | Shenzhen Dynanonic vs. Guangzhou Jointas Chemical | Shenzhen Dynanonic vs. Daoming OpticsChemical Co |
Haima Automobile vs. Agricultural Bank of | Haima Automobile vs. Postal Savings Bank | Haima Automobile vs. Gansu Jiu Steel | Haima Automobile vs. Shandong Mining Machinery |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |