Correlation Between GRG Banking and Harbin Air
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By analyzing existing cross correlation between GRG Banking Equipment and Harbin Air Conditioning, you can compare the effects of market volatilities on GRG Banking 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 GRG Banking with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Harbin Air.
Diversification Opportunities for GRG Banking and Harbin Air
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and Harbin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment 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 GRG Banking 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 GRG Banking Equipment 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 GRG Banking i.e., GRG Banking and Harbin Air go up and down completely randomly.
Pair Corralation between GRG Banking and Harbin Air
Assuming the 90 days trading horizon GRG Banking is expected to generate 2.79 times less return on investment than Harbin Air. But when comparing it to its historical volatility, GRG Banking Equipment is 3.74 times less risky than Harbin Air. It trades about 0.08 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 430.00 in Harbin Air Conditioning on November 4, 2024 and sell it today you would earn a total of 16.00 from holding Harbin Air Conditioning or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Harbin Air Conditioning
Performance |
| Timeline |
| GRG Banking Equipment |
| Harbin Air Conditioning |
GRG Banking and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Harbin Air
The main advantage of trading using opposite GRG Banking and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking 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.| GRG Banking vs. Postal Savings Bank | GRG Banking vs. Hubei Geoway Investment | GRG Banking vs. Shenzhen Centralcon Investment | GRG Banking vs. Shenwu Energy Saving |
| Harbin Air vs. Anhui Tongguan Copper | Harbin Air vs. Shanghai Yanpu Metal | Harbin Air vs. JCHX Mining Management | Harbin Air vs. North Copper Shanxi |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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