Correlation Between Harbin Air and HaiXin Foods
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By analyzing existing cross correlation between Harbin Air Conditioning and HaiXin Foods Co, you can compare the effects of market volatilities on Harbin Air and HaiXin Foods 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 HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and HaiXin Foods.
Diversification Opportunities for Harbin Air and HaiXin Foods
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and HaiXin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods 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 HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of Harbin Air i.e., Harbin Air and HaiXin Foods go up and down completely randomly.
Pair Corralation between Harbin Air and HaiXin Foods
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 1.12 times more return on investment than HaiXin Foods. However, Harbin Air is 1.12 times more volatile than HaiXin Foods Co. It trades about 0.07 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.3 per unit of risk. If you would invest 503.00 in Harbin Air Conditioning on October 18, 2024 and sell it today you would earn a total of 27.00 from holding Harbin Air Conditioning or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. HaiXin Foods Co
Performance |
| Timeline |
| Harbin Air Conditioning |
| HaiXin Foods |
Harbin Air and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and HaiXin Foods
The main advantage of trading using opposite Harbin Air and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| Harbin Air vs. Guangdong Shenglu Telecommunication | Harbin Air vs. Haima Automobile Group | Harbin Air vs. Anhui Deli Household | Harbin Air vs. China Mobile Limited |
| HaiXin Foods vs. Harbin Air Conditioning | HaiXin Foods vs. Chengdu Xingrong Investment | HaiXin Foods vs. Jiangsu Yueda Investment | HaiXin Foods vs. Fuzhou Rockchip Electronics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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