Correlation Between Hunan Investment and Harbin Air
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By analyzing existing cross correlation between Hunan Investment Group and Harbin Air Conditioning, you can compare the effects of market volatilities on Hunan Investment and Harbin Air 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 Hunan Investment with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Harbin Air.
Diversification Opportunities for Hunan Investment and Harbin Air
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and Harbin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Hunan Investment i.e., Hunan Investment and Harbin Air go up and down completely randomly.
Pair Corralation between Hunan Investment and Harbin Air
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.74 times more return on investment than Harbin Air. However, Hunan Investment is 1.74 times more volatile than Harbin Air Conditioning. It trades about 0.21 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.25 per unit of risk. If you would invest 526.00 in Hunan Investment Group on September 14, 2024 and sell it today you would earn a total of 89.00 from holding Hunan Investment Group or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Harbin Air Conditioning
Performance |
| Timeline |
| Hunan Investment |
| Harbin Air Conditioning |
Hunan Investment and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Harbin Air
The main advantage of trading using opposite Hunan Investment and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Harbin Air 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 Air will offset losses from the drop in Harbin Air's long position.| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock Technology |
| Harbin Air vs. PetroChina Co Ltd | Harbin Air vs. China Mobile Limited | Harbin Air vs. CNOOC Limited | Harbin Air vs. Ping An Insurance |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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