Correlation Between Shandong Polymer and Harbin Air
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Harbin Air Conditioning, you can compare the effects of market volatilities on Shandong Polymer 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 Shandong Polymer with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Harbin Air.
Diversification Opportunities for Shandong Polymer and Harbin Air
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Harbin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals 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 Shandong Polymer 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 Shandong Polymer Biochemicals 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 Shandong Polymer i.e., Shandong Polymer and Harbin Air go up and down completely randomly.
Pair Corralation between Shandong Polymer and Harbin Air
Assuming the 90 days trading horizon Shandong Polymer is expected to generate 27.0 times less return on investment than Harbin Air. In addition to that, Shandong Polymer is 1.03 times more volatile than Harbin Air Conditioning. It trades about 0.0 of its total potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.01 per unit of volatility. If you would invest 520.00 in Harbin Air Conditioning on September 3, 2024 and sell it today you would lose (22.00) from holding Harbin Air Conditioning or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Harbin Air Conditioning
Performance |
| Timeline |
| Shandong Polymer Bio |
| Harbin Air Conditioning |
Shandong Polymer and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Harbin Air
The main advantage of trading using opposite Shandong Polymer and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer 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.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Hoshine Silicon Ind |
| Harbin Air vs. Cultural Investment Holdings | Harbin Air vs. Gome Telecom Equipment | Harbin Air vs. Bus Online Co | Harbin Air vs. Holitech Technology 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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