Correlation Between Chongqing Changan and Harbin Hatou
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By analyzing existing cross correlation between Chongqing Changan Automobile and Harbin Hatou Investment, you can compare the effects of market volatilities on Chongqing Changan 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 Chongqing Changan with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Changan and Harbin Hatou.
Diversification Opportunities for Chongqing Changan and Harbin Hatou
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and Harbin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Changan Automobile 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 Chongqing Changan 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 Chongqing Changan Automobile 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 Chongqing Changan i.e., Chongqing Changan and Harbin Hatou go up and down completely randomly.
Pair Corralation between Chongqing Changan and Harbin Hatou
Assuming the 90 days trading horizon Chongqing Changan is expected to generate 5.46 times less return on investment than Harbin Hatou. But when comparing it to its historical volatility, Chongqing Changan Automobile is 1.11 times less risky than Harbin Hatou. It trades about 0.02 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 498.00 in Harbin Hatou Investment on September 1, 2024 and sell it today you would earn a total of 174.00 from holding Harbin Hatou Investment or generate 34.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Changan Automobile vs. Harbin Hatou Investment
Performance |
| Timeline |
| Chongqing Changan |
| Harbin Hatou Investment |
Chongqing Changan and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Changan and Harbin Hatou
The main advantage of trading using opposite Chongqing Changan and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Changan 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.| Chongqing Changan vs. Biwin Storage Technology | Chongqing Changan vs. PetroChina Co Ltd | Chongqing Changan vs. Industrial and Commercial | Chongqing Changan vs. China Construction Bank |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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