Correlation Between Shijiazhuang Yiling and Harbin Hatou
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By analyzing existing cross correlation between Shijiazhuang Yiling Pharmaceutical and Harbin Hatou Investment, you can compare the effects of market volatilities on Shijiazhuang Yiling 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 Shijiazhuang Yiling with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shijiazhuang Yiling and Harbin Hatou.
Diversification Opportunities for Shijiazhuang Yiling and Harbin Hatou
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shijiazhuang and Harbin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shijiazhuang Yiling Pharmaceut 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 Shijiazhuang Yiling 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 Shijiazhuang Yiling Pharmaceutical 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 Shijiazhuang Yiling i.e., Shijiazhuang Yiling and Harbin Hatou go up and down completely randomly.
Pair Corralation between Shijiazhuang Yiling and Harbin Hatou
Assuming the 90 days trading horizon Shijiazhuang Yiling Pharmaceutical is expected to under-perform the Harbin Hatou. But the stock apears to be less risky and, when comparing its historical volatility, Shijiazhuang Yiling Pharmaceutical is 1.2 times less risky than Harbin Hatou. The stock trades about -0.08 of its potential returns per unit of risk. The Harbin Hatou Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 495.00 in Harbin Hatou Investment on September 4, 2024 and sell it today you would earn a total of 207.00 from holding Harbin Hatou Investment or generate 41.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shijiazhuang Yiling Pharmaceut vs. Harbin Hatou Investment
Performance |
| Timeline |
| Shijiazhuang Yiling |
| Harbin Hatou Investment |
Shijiazhuang Yiling and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shijiazhuang Yiling and Harbin Hatou
The main advantage of trading using opposite Shijiazhuang Yiling and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shijiazhuang Yiling 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.| Shijiazhuang Yiling vs. Industrial and Commercial | Shijiazhuang Yiling vs. Agricultural Bank of | Shijiazhuang Yiling vs. China Construction Bank | Shijiazhuang Yiling vs. Bank of China |
| Harbin Hatou vs. Ping An Insurance | Harbin Hatou vs. CICC Fund Management | Harbin Hatou vs. AVIC Fund Management | Harbin Hatou vs. Caihong Display Devices |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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