Correlation Between Harbin Air and Ningbo Tech
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By analyzing existing cross correlation between Harbin Air Conditioning and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Harbin Air and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Ningbo Tech.
Diversification Opportunities for Harbin Air and Ningbo Tech
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Ningbo is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Harbin Air i.e., Harbin Air and Ningbo Tech go up and down completely randomly.
Pair Corralation between Harbin Air and Ningbo Tech
Assuming the 90 days trading horizon Harbin Air is expected to generate 6.66 times less return on investment than Ningbo Tech. In addition to that, Harbin Air is 1.45 times more volatile than Ningbo Tech Bank Co. It trades about 0.01 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.11 per unit of volatility. If you would invest 260.00 in Ningbo Tech Bank Co on October 25, 2024 and sell it today you would earn a total of 45.00 from holding Ningbo Tech Bank Co or generate 17.31% 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. Ningbo Tech Bank Co
Performance |
| Timeline |
| Harbin Air Conditioning |
| Ningbo Tech Bank |
Harbin Air and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Ningbo Tech
The main advantage of trading using opposite Harbin Air and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| Harbin Air vs. Pengxin International Mining | Harbin Air vs. Uroica Mining Safety | Harbin Air vs. Zhengzhou Coal Mining | Harbin Air vs. Western Mining Co |
| Ningbo Tech vs. Lotus Health Group | Ningbo Tech vs. Anhui Jinhe Industrial | Ningbo Tech vs. Dezhan HealthCare Co | Ningbo Tech vs. Ningbo Fujia Industrial |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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