Correlation Between Harbin Air and Songz Automobile
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By analyzing existing cross correlation between Harbin Air Conditioning and Songz Automobile Air, you can compare the effects of market volatilities on Harbin Air and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Songz Automobile.
Diversification Opportunities for Harbin Air and Songz Automobile
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Songz is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Harbin Air i.e., Harbin Air and Songz Automobile go up and down completely randomly.
Pair Corralation between Harbin Air and Songz Automobile
Assuming the 90 days trading horizon Harbin Air is expected to generate 1.27 times less return on investment than Songz Automobile. In addition to that, Harbin Air is 2.49 times more volatile than Songz Automobile Air. It trades about 0.02 of its total potential returns per unit of risk. Songz Automobile Air is currently generating about 0.06 per unit of volatility. If you would invest 673.00 in Songz Automobile Air on October 25, 2024 and sell it today you would earn a total of 15.00 from holding Songz Automobile Air or generate 2.23% 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. Songz Automobile Air
Performance |
| Timeline |
| Harbin Air Conditioning |
| Songz Automobile Air |
Harbin Air and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Songz Automobile
The main advantage of trading using opposite Harbin Air and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile'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 |
| Songz Automobile vs. PetroChina Co Ltd | Songz Automobile vs. Gansu Jiu Steel | Songz Automobile vs. Ming Yang Smart | Songz Automobile vs. Aba Chemicals Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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