Correlation Between Harbin Air and Xiandai Investment
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By analyzing existing cross correlation between Harbin Air Conditioning and Xiandai Investment Co, you can compare the effects of market volatilities on Harbin Air and Xiandai Investment 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 Harbin Air with a short position of Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Xiandai Investment.
Diversification Opportunities for Harbin Air and Xiandai Investment
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Xiandai is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment and Harbin Air 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 Harbin Air Conditioning are associated (or correlated) with Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Harbin Air i.e., Harbin Air and Xiandai Investment go up and down completely randomly.
Pair Corralation between Harbin Air and Xiandai Investment
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 4.77 times more return on investment than Xiandai Investment. However, Harbin Air is 4.77 times more volatile than Xiandai Investment Co. It trades about 0.03 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about -0.07 per unit of risk. If you would invest 443.00 in Harbin Air Conditioning on November 3, 2024 and sell it today you would earn a total of 3.00 from holding Harbin Air Conditioning or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Xiandai Investment Co
Performance |
| Timeline |
| Harbin Air Conditioning |
| Xiandai Investment |
Harbin Air and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Xiandai Investment
The main advantage of trading using opposite Harbin Air and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Harbin Air vs. Anhui Jinhe Industrial | Harbin Air vs. Western Metal Materials | Harbin Air vs. Guangzhou Dongfang Hotel | Harbin Air vs. SSAW Hotels Resorts |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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