Correlation Between Harbin Air and Tianshui Huatian
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By analyzing existing cross correlation between Harbin Air Conditioning and Tianshui Huatian Technology, you can compare the effects of market volatilities on Harbin Air and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Tianshui Huatian.
Diversification Opportunities for Harbin Air and Tianshui Huatian
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Tianshui is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Harbin Air i.e., Harbin Air and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Harbin Air and Tianshui Huatian
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 0.96 times more return on investment than Tianshui Huatian. However, Harbin Air Conditioning is 1.04 times less risky than Tianshui Huatian. It trades about 0.2 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about -0.26 per unit of risk. If you would invest 484.00 in Harbin Air Conditioning on September 13, 2024 and sell it today you would earn a total of 43.00 from holding Harbin Air Conditioning or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Tianshui Huatian Technology
Performance |
| Timeline |
| Harbin Air Conditioning |
| Tianshui Huatian Tec |
Harbin Air and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Tianshui Huatian
The main advantage of trading using opposite Harbin Air and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| Harbin Air vs. Huaxia Fund Management | Harbin Air vs. Gifore Agricultural Machinery | Harbin Air vs. Qijing Machinery | Harbin Air vs. Hongrun Construction Group |
| Tianshui Huatian vs. Hefei Metalforming Mach | Tianshui Huatian vs. Harbin Air Conditioning | Tianshui Huatian vs. Western Metal Materials | Tianshui Huatian vs. Allwin Telecommunication 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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