Correlation Between 159005 and Harbin Air
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By analyzing existing cross correlation between 159005 and Harbin Air Conditioning, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Harbin Air.
Diversification Opportunities for 159005 and Harbin Air
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 159005 and Harbin is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Harbin Air go up and down completely randomly.
Pair Corralation between 159005 and Harbin Air
Assuming the 90 days trading horizon 159005 is expected to generate 0.01 times more return on investment than Harbin Air. However, 159005 is 134.58 times less risky than Harbin Air. It trades about 0.15 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.0 per unit of risk. If you would invest 9,843 in 159005 on November 6, 2024 and sell it today you would earn a total of 157.00 from holding 159005 or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Harbin Air Conditioning
Performance |
| Timeline |
| 159005 |
| Harbin Air Conditioning |
159005 and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Harbin Air
The main advantage of trading using opposite 159005 and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Harbin Air Conditioning pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Harbin Air vs. Suzhou Weizhixiang Food | Harbin Air vs. Jiahe Foods Industry | Harbin Air vs. Guilin Seamild Foods | Harbin Air vs. Zhejiang Huatong Meat |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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