Correlation Between Harbin Air and Ningbo Ligong
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By analyzing existing cross correlation between Harbin Air Conditioning and Ningbo Ligong Online, you can compare the effects of market volatilities on Harbin Air and Ningbo Ligong 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 Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Ningbo Ligong.
Diversification Opportunities for Harbin Air and Ningbo Ligong
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harbin and Ningbo is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Harbin Air i.e., Harbin Air and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Harbin Air and Ningbo Ligong
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 1.88 times more return on investment than Ningbo Ligong. However, Harbin Air is 1.88 times more volatile than Ningbo Ligong Online. It trades about 0.0 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.03 per unit of risk. If you would invest 467.00 in Harbin Air Conditioning on November 2, 2024 and sell it today you would lose (21.00) from holding Harbin Air Conditioning or give up 4.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Ningbo Ligong Online
Performance |
| Timeline |
| Harbin Air Conditioning |
| Ningbo Ligong Online |
Harbin Air and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Ningbo Ligong
The main advantage of trading using opposite Harbin Air and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Ningbo Ligong 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 Ligong will offset losses from the drop in Ningbo Ligong's long position.| Harbin Air vs. Shanghai CEO Environmental | Harbin Air vs. Western Metal Materials | Harbin Air vs. Cicc Fund Management | Harbin Air vs. Innovative Medical Management |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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