Correlation Between Harbin Air and Do Fluoride
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By analyzing existing cross correlation between Harbin Air Conditioning and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Harbin Air and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Do Fluoride.
Diversification Opportunities for Harbin Air and Do Fluoride
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and 002407 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Harbin Air i.e., Harbin Air and Do Fluoride go up and down completely randomly.
Pair Corralation between Harbin Air and Do Fluoride
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 1.07 times more return on investment than Do Fluoride. However, Harbin Air is 1.07 times more volatile than Do Fluoride Chemicals Co. It trades about 0.02 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.03 per unit of risk. If you would invest 487.00 in Harbin Air Conditioning on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Harbin Air Conditioning or generate 8.21% 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. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Harbin Air Conditioning |
| Do Fluoride Chemicals |
Harbin Air and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Do Fluoride
The main advantage of trading using opposite Harbin Air and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride'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 |
| Do Fluoride vs. Harbin Air Conditioning | Do Fluoride vs. Shandong Polymer Biochemicals | Do Fluoride vs. China Express Airlines | Do Fluoride vs. Sunwave Communications 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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