Correlation Between Shanghai Phichem and Harbin Hatou
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By analyzing existing cross correlation between Shanghai Phichem Material and Harbin Hatou Investment, you can compare the effects of market volatilities on Shanghai Phichem 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 Shanghai Phichem with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Harbin Hatou.
Diversification Opportunities for Shanghai Phichem and Harbin Hatou
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Harbin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material 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 Shanghai Phichem 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 Shanghai Phichem Material 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 Shanghai Phichem i.e., Shanghai Phichem and Harbin Hatou go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Harbin Hatou
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 0.77 times more return on investment than Harbin Hatou. However, Shanghai Phichem Material is 1.3 times less risky than Harbin Hatou. It trades about 0.14 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.13 per unit of risk. If you would invest 1,515 in Shanghai Phichem Material on November 3, 2024 and sell it today you would earn a total of 70.00 from holding Shanghai Phichem Material or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Harbin Hatou Investment
Performance |
| Timeline |
| Shanghai Phichem Material |
| Harbin Hatou Investment |
Shanghai Phichem and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Harbin Hatou
The main advantage of trading using opposite Shanghai Phichem and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem 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.| Shanghai Phichem vs. Allied Machinery Co | Shanghai Phichem vs. Ningbo Construction Co | Shanghai Phichem vs. Easyhome New Retail | Shanghai Phichem vs. China World Trade |
| Harbin Hatou vs. Dhc Software Co | Harbin Hatou vs. Glodon Software Co | Harbin Hatou vs. Lander Sports Development | Harbin Hatou vs. Linkage Software 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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