Correlation Between Shengda Mining and Harbin Air
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By analyzing existing cross correlation between Shengda Mining Co and Harbin Air Conditioning, you can compare the effects of market volatilities on Shengda Mining 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 Shengda Mining with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Harbin Air.
Diversification Opportunities for Shengda Mining and Harbin Air
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shengda and Harbin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co 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 Shengda Mining 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 Shengda Mining Co 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 Shengda Mining i.e., Shengda Mining and Harbin Air go up and down completely randomly.
Pair Corralation between Shengda Mining and Harbin Air
Assuming the 90 days trading horizon Shengda Mining Co is expected to under-perform the Harbin Air. In addition to that, Shengda Mining is 1.43 times more volatile than Harbin Air Conditioning. It trades about -0.07 of its total potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.12 per unit of volatility. If you would invest 478.00 in Harbin Air Conditioning on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Harbin Air Conditioning or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shengda Mining Co vs. Harbin Air Conditioning
Performance |
| Timeline |
| Shengda Mining |
| Harbin Air Conditioning |
Shengda Mining and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Harbin Air
The main advantage of trading using opposite Shengda Mining and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining 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.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Shandong Gold Mining |
| Harbin Air vs. Agricultural Bank of | Harbin Air vs. Industrial and Commercial | Harbin Air vs. Bank of China | Harbin Air vs. China Construction Bank |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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