Correlation Between Hangzhou Gaoxin and Harbin Air
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Harbin Air Conditioning, you can compare the effects of market volatilities on Hangzhou Gaoxin 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 Hangzhou Gaoxin with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Harbin Air.
Diversification Opportunities for Hangzhou Gaoxin and Harbin Air
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Harbin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin 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 Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Harbin Air go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Harbin Air
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to under-perform the Harbin Air. In addition to that, Hangzhou Gaoxin is 1.32 times more volatile than Harbin Air Conditioning. It trades about -0.12 of its total potential returns per unit of risk. Harbin Air Conditioning is currently generating about -0.14 per unit of volatility. If you would invest 497.00 in Harbin Air Conditioning on September 29, 2024 and sell it today you would lose (48.00) from holding Harbin Air Conditioning or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Harbin Air Conditioning
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Harbin Air Conditioning |
Hangzhou Gaoxin and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Harbin Air
The main advantage of trading using opposite Hangzhou Gaoxin and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin 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.| Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Wanhua Chemical Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin vs. Shandong Gold Mining |
| Harbin Air vs. Kweichow Moutai Co | Harbin Air vs. Contemporary Amperex Technology | Harbin Air vs. G bits Network Technology | Harbin Air vs. BYD Co Ltd |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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