Correlation Between Shenzhen Kexin and Harbin Air
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Harbin Air Conditioning, you can compare the effects of market volatilities on Shenzhen Kexin 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 Shenzhen Kexin with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Harbin Air.
Diversification Opportunities for Shenzhen Kexin and Harbin Air
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Harbin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication 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 Shenzhen Kexin 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 Kexin Communication 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 Shenzhen Kexin i.e., Shenzhen Kexin and Harbin Air go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Harbin Air
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Harbin Air. In addition to that, Shenzhen Kexin is 1.47 times more volatile than Harbin Air Conditioning. It trades about -0.22 of its total potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.22 per unit of volatility. If you would invest 467.00 in Harbin Air Conditioning on September 5, 2024 and sell it today you would earn a total of 49.00 from holding Harbin Air Conditioning or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Harbin Air Conditioning
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Harbin Air Conditioning |
Shenzhen Kexin and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Harbin Air
The main advantage of trading using opposite Shenzhen Kexin and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin 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.| Shenzhen Kexin vs. Chengdu B ray Media | Shenzhen Kexin vs. Shanghai Ziyan Foods | Shenzhen Kexin vs. Shanghai Metersbonwe FashionAccessories | Shenzhen Kexin vs. Great Sun Foods Co |
| Harbin Air vs. Shaanxi Meineng Clean | Harbin Air vs. Shandong Mining Machinery | Harbin Air vs. China Railway Construction | Harbin Air vs. Long Yuan Construction |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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