Correlation Between Shenzhen Centralcon and Harbin Hatou
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Harbin Hatou Investment, you can compare the effects of market volatilities on Shenzhen Centralcon and Harbin Hatou 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 Centralcon with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Harbin Hatou.
Diversification Opportunities for Shenzhen Centralcon and Harbin Hatou
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Harbin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment and Shenzhen Centralcon 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 Centralcon Investment are associated (or correlated) with Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Harbin Hatou go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Harbin Hatou
Assuming the 90 days trading horizon Shenzhen Centralcon is expected to generate 3.76 times less return on investment than Harbin Hatou. In addition to that, Shenzhen Centralcon is 1.38 times more volatile than Harbin Hatou Investment. It trades about 0.01 of its total potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.03 per unit of volatility. If you would invest 612.00 in Harbin Hatou Investment on September 4, 2024 and sell it today you would earn a total of 90.00 from holding Harbin Hatou Investment or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Harbin Hatou Investment
Performance |
| Timeline |
| Shenzhen Centralcon |
| Harbin Hatou Investment |
Shenzhen Centralcon and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Harbin Hatou
The main advantage of trading using opposite Shenzhen Centralcon and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Shenzhen Centralcon vs. Lander Sports Development | Shenzhen Centralcon vs. Longxing Chemical Stock | Shenzhen Centralcon vs. Miracll Chemicals Co | Shenzhen Centralcon vs. Sportsoul Co Ltd |
| Harbin Hatou vs. Ping An Insurance | Harbin Hatou vs. CICC Fund Management | Harbin Hatou vs. AVIC Fund Management | Harbin Hatou vs. Caihong Display Devices |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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