Correlation Between Hunan Investment and Harbin Hatou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hunan Investment Group and Harbin Hatou Investment, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Harbin Hatou.
Diversification Opportunities for Hunan Investment and Harbin Hatou
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Harbin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group 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 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 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 Hunan Investment i.e., Hunan Investment and Harbin Hatou go up and down completely randomly.
Pair Corralation between Hunan Investment and Harbin Hatou
Assuming the 90 days trading horizon Hunan Investment is expected to generate 2.93 times less return on investment than Harbin Hatou. But when comparing it to its historical volatility, Hunan Investment Group is 1.14 times less risky than Harbin Hatou. It trades about 0.01 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Harbin Hatou Investment on November 27, 2024 and sell it today you would earn a total of 146.00 from holding Harbin Hatou Investment or generate 28.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Harbin Hatou Investment
Performance |
| Timeline |
| Hunan Investment |
| Harbin Hatou Investment |
Hunan Investment and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Harbin Hatou
The main advantage of trading using opposite Hunan Investment and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. CareRay Digital Medical | Hunan Investment vs. Heren Health Co | Hunan Investment vs. Winner Medical Co | Hunan Investment vs. Andon Health Co |
| Harbin Hatou vs. Jiangsu Phoenix Publishing | Harbin Hatou vs. Zhengzhou Coal Mining | Harbin Hatou vs. Hefei Metalforming Mach | Harbin Hatou vs. Anhui Tongguan Copper |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |