Correlation Between Chengdu Xingrong and Harbin Hatou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xingrong Investment and Harbin Hatou Investment, you can compare the effects of market volatilities on Chengdu Xingrong 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 Chengdu Xingrong with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Harbin Hatou.
Diversification Opportunities for Chengdu Xingrong and Harbin Hatou
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Harbin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong 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 Chengdu Xingrong 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 Chengdu Xingrong 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 Chengdu Xingrong i.e., Chengdu Xingrong and Harbin Hatou go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Harbin Hatou
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.61 times more return on investment than Harbin Hatou. However, Chengdu Xingrong Investment is 1.63 times less risky than Harbin Hatou. It trades about -0.1 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.14 per unit of risk. If you would invest 738.00 in Chengdu Xingrong Investment on September 1, 2024 and sell it today you would lose (33.00) from holding Chengdu Xingrong Investment or give up 4.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Harbin Hatou Investment
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Harbin Hatou Investment |
Chengdu Xingrong and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Harbin Hatou
The main advantage of trading using opposite Chengdu Xingrong and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong 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.| Chengdu Xingrong vs. Lutian Machinery Co | Chengdu Xingrong vs. China Longyuan Power | Chengdu Xingrong vs. PetroChina Co Ltd | Chengdu Xingrong vs. Bank of China |
| Harbin Hatou vs. Cambricon Technologies Corp | Harbin Hatou vs. Loongson Technology Corp | Harbin Hatou vs. Shenzhen Fortune Trend | Harbin Hatou vs. Chongqing Road Bridge |
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
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets |