Correlation Between Xinjiang Communications and Harbin Hatou
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By analyzing existing cross correlation between Xinjiang Communications Construction and Harbin Hatou Investment, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Harbin Hatou.
Diversification Opportunities for Xinjiang Communications and Harbin Hatou
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Harbin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr 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 Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Harbin Hatou go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Harbin Hatou
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.47 times more return on investment than Harbin Hatou. However, Xinjiang Communications Construction is 2.14 times less risky than Harbin Hatou. It trades about 0.06 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.01 per unit of risk. If you would invest 1,269 in Xinjiang Communications Construction on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Xinjiang Communications Construction or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Harbin Hatou Investment
Performance |
| Timeline |
| Xinjiang Communications |
| Harbin Hatou Investment |
Xinjiang Communications and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Harbin Hatou
The main advantage of trading using opposite Xinjiang Communications and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
| Harbin Hatou vs. Nuode Investment Co | Harbin Hatou vs. Xinjiang Communications Construction | Harbin Hatou vs. Vanfund Urban Investment | Harbin Hatou vs. Jiangsu Yueda Investment |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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