Correlation Between Harbin Air and Shandong Polymer
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By analyzing existing cross correlation between Harbin Air Conditioning and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Harbin Air and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Shandong Polymer.
Diversification Opportunities for Harbin Air and Shandong Polymer
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Shandong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Harbin Air i.e., Harbin Air and Shandong Polymer go up and down completely randomly.
Pair Corralation between Harbin Air and Shandong Polymer
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 0.97 times more return on investment than Shandong Polymer. However, Harbin Air Conditioning is 1.03 times less risky than Shandong Polymer. It trades about 0.01 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.0 per unit of risk. If you would invest 520.00 in Harbin Air Conditioning on September 3, 2024 and sell it today you would lose (22.00) from holding Harbin Air Conditioning or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Harbin Air Conditioning |
| Shandong Polymer Bio |
Harbin Air and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Shandong Polymer
The main advantage of trading using opposite Harbin Air and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's long position.| Harbin Air vs. Cultural Investment Holdings | Harbin Air vs. Gome Telecom Equipment | Harbin Air vs. Bus Online Co | Harbin Air vs. Holitech Technology Co |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Hoshine Silicon Ind |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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