Correlation Between Harbin Air and Kuangda Technology
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By analyzing existing cross correlation between Harbin Air Conditioning and Kuangda Technology Group, you can compare the effects of market volatilities on Harbin Air and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Kuangda Technology.
Diversification Opportunities for Harbin Air and Kuangda Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Kuangda is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Harbin Air i.e., Harbin Air and Kuangda Technology go up and down completely randomly.
Pair Corralation between Harbin Air and Kuangda Technology
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 1.11 times more return on investment than Kuangda Technology. However, Harbin Air is 1.11 times more volatile than Kuangda Technology Group. It trades about -0.19 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.25 per unit of risk. If you would invest 516.00 in Harbin Air Conditioning on October 11, 2024 and sell it today you would lose (74.00) from holding Harbin Air Conditioning or give up 14.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Kuangda Technology Group
Performance |
| Timeline |
| Harbin Air Conditioning |
| Kuangda Technology |
Harbin Air and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Kuangda Technology
The main advantage of trading using opposite Harbin Air and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Harbin Air vs. Songz Automobile Air | Harbin Air vs. Panda Financial Holding | Harbin Air vs. Fibocom Wireless | Harbin Air vs. Eastroc Beverage Group |
| Kuangda Technology vs. Kuang Chi Technologies | Kuangda Technology vs. Shanghai Shibei Hi Tech | Kuangda Technology vs. Hangzhou Arcvideo Technology | Kuangda Technology vs. Harbin Air Conditioning |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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