Correlation Between Harbin Air and Shenzhen Glory
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By analyzing existing cross correlation between Harbin Air Conditioning and Shenzhen Glory Medical, you can compare the effects of market volatilities on Harbin Air and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Shenzhen Glory.
Diversification Opportunities for Harbin Air and Shenzhen Glory
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Shenzhen is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Harbin Air i.e., Harbin Air and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Harbin Air and Shenzhen Glory
Assuming the 90 days trading horizon Harbin Air is expected to generate 1.22 times less return on investment than Shenzhen Glory. But when comparing it to its historical volatility, Harbin Air Conditioning is 1.14 times less risky than Shenzhen Glory. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Shenzhen Glory Medical on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Shenzhen Glory Medical or generate 31.01% 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. Shenzhen Glory Medical
Performance |
| Timeline |
| Harbin Air Conditioning |
| Shenzhen Glory Medical |
Harbin Air and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Shenzhen Glory
The main advantage of trading using opposite Harbin Air and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Harbin Air vs. Chongqing Road Bridge | Harbin Air vs. Shanghai Broadband Technology | Harbin Air vs. Mango Excellent Media | Harbin Air vs. Shanghai Xinhua Media |
| Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. China Construction Bank | Shenzhen Glory vs. Bank of China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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