Correlation Between Beijing Bewinner and Harbin Air
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By analyzing existing cross correlation between Beijing Bewinner Communications and Harbin Air Conditioning, you can compare the effects of market volatilities on Beijing Bewinner 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 Beijing Bewinner with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Harbin Air.
Diversification Opportunities for Beijing Bewinner and Harbin Air
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Harbin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication 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 Beijing Bewinner 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 Beijing Bewinner Communications 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 Beijing Bewinner i.e., Beijing Bewinner and Harbin Air go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Harbin Air
Assuming the 90 days trading horizon Beijing Bewinner is expected to generate 1.54 times less return on investment than Harbin Air. But when comparing it to its historical volatility, Beijing Bewinner Communications is 1.3 times less risky than Harbin Air. It trades about 0.03 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 443.00 in Harbin Air Conditioning on November 2, 2024 and sell it today you would earn a total of 3.00 from holding Harbin Air Conditioning or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Harbin Air Conditioning
Performance |
| Timeline |
| Beijing Bewinner Com |
| Harbin Air Conditioning |
Beijing Bewinner and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Harbin Air
The main advantage of trading using opposite Beijing Bewinner and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner 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.| Beijing Bewinner vs. Unisplendour Corp | Beijing Bewinner vs. Xiamen Bank Co | Beijing Bewinner vs. Zhejiang Construction Investment | Beijing Bewinner vs. Shenzhen Centralcon Investment |
| Harbin Air vs. Sichuan Hebang Biotechnology | Harbin Air vs. Easyhome New Retail | Harbin Air vs. Fiberhome Telecommunication Technologies | Harbin Air vs. UE Furniture Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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