Correlation Between Super Dragon and Harbin Air
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Harbin Air Conditioning, you can compare the effects of market volatilities on Super Dragon 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 Super Dragon with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Harbin Air.
Diversification Opportunities for Super Dragon and Harbin Air
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Super and Harbin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast 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 Super Dragon 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 Super Dragon Engineering Plastics 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 Super Dragon i.e., Super Dragon and Harbin Air go up and down completely randomly.
Pair Corralation between Super Dragon and Harbin Air
Assuming the 90 days trading horizon Super Dragon is expected to generate 1.85 times less return on investment than Harbin Air. But when comparing it to its historical volatility, Super Dragon Engineering Plastics is 1.3 times less risky than Harbin Air. It trades about 0.01 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 453.00 in Harbin Air Conditioning on October 25, 2024 and sell it today you would lose (9.00) from holding Harbin Air Conditioning or give up 1.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Harbin Air Conditioning
Performance |
| Timeline |
| Super Dragon Enginee |
| Harbin Air Conditioning |
Super Dragon and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Harbin Air
The main advantage of trading using opposite Super Dragon and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon 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.| Super Dragon vs. Kweichow Moutai Co | Super Dragon vs. Contemporary Amperex Technology | Super Dragon vs. Beijing Roborock Technology | Super Dragon vs. BYD Co Ltd |
| Harbin Air vs. Pengxin International Mining | Harbin Air vs. Uroica Mining Safety | Harbin Air vs. Zhengzhou Coal Mining | Harbin Air vs. Western Mining 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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