Correlation Between Shenzhen Silver and Harbin Hatou
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By analyzing existing cross correlation between Shenzhen Silver Basis and Harbin Hatou Investment, you can compare the effects of market volatilities on Shenzhen Silver 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 Shenzhen Silver with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Harbin Hatou.
Diversification Opportunities for Shenzhen Silver and Harbin Hatou
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Harbin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis 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 Shenzhen Silver 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 Shenzhen Silver Basis 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 Shenzhen Silver i.e., Shenzhen Silver and Harbin Hatou go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Harbin Hatou
Assuming the 90 days trading horizon Shenzhen Silver is expected to generate 5.2 times less return on investment than Harbin Hatou. In addition to that, Shenzhen Silver is 1.68 times more volatile than Harbin Hatou Investment. It trades about 0.01 of its total potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.05 per unit of volatility. If you would invest 614.00 in Harbin Hatou Investment on September 14, 2024 and sell it today you would earn a total of 165.00 from holding Harbin Hatou Investment or generate 26.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Harbin Hatou Investment
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Harbin Hatou Investment |
Shenzhen Silver and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Harbin Hatou
The main advantage of trading using opposite Shenzhen Silver and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver 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.| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda Investment |
| Harbin Hatou vs. Industrial and Commercial | Harbin Hatou vs. Agricultural Bank of | Harbin Hatou vs. China Construction Bank | Harbin Hatou vs. Bank of China |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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