Correlation Between Hunan Investment and Harbin Hatou
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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
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Harbin is 0.43. 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 Group is expected to generate 0.67 times more return on investment than Harbin Hatou. However, Hunan Investment Group is 1.5 times less risky than Harbin Hatou. It trades about -0.03 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.23 per unit of risk. If you would invest 527.00 in Hunan Investment Group on October 24, 2024 and sell it today you would lose (9.00) from holding Hunan Investment Group or give up 1.71% of portfolio value 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. HeBei Jinniu Chemical | Hunan Investment vs. Miracll Chemicals Co | Hunan Investment vs. Guizhou Chanhen Chemical | Hunan Investment vs. Shannon Semiconductor Technology |
| Harbin Hatou vs. Hubei Geoway Investment | Harbin Hatou vs. Jointo Energy Investment | Harbin Hatou vs. China Sports Industry | Harbin Hatou vs. Sportsoul Co Ltd |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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