Correlation Between Harbin Air and Shenzhen Silver
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By analyzing existing cross correlation between Harbin Air Conditioning and Shenzhen Silver Basis, you can compare the effects of market volatilities on Harbin Air and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Shenzhen Silver.
Diversification Opportunities for Harbin Air and Shenzhen Silver
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Shenzhen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Harbin Air i.e., Harbin Air and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Harbin Air and Shenzhen Silver
Assuming the 90 days trading horizon Harbin Air is expected to generate 1.57 times less return on investment than Shenzhen Silver. But when comparing it to its historical volatility, Harbin Air Conditioning is 2.12 times less risky than Shenzhen Silver. It trades about 0.23 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 908.00 in Shenzhen Silver Basis on December 4, 2024 and sell it today you would earn a total of 93.00 from holding Shenzhen Silver Basis or generate 10.24% 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. Shenzhen Silver Basis
Performance |
| Timeline |
| Harbin Air Conditioning |
| Shenzhen Silver Basis |
Harbin Air and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Shenzhen Silver
The main advantage of trading using opposite Harbin Air and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Harbin Air vs. Suzhou Xingye Material | Harbin Air vs. Orinko Advanced Plastics | Harbin Air vs. Grinm Advanced Materials | Harbin Air vs. Advanced Technology Materials |
| Shenzhen Silver vs. Zhejiang Kingland Pipeline | Shenzhen Silver vs. APT Medical | Shenzhen Silver vs. Western Metal Materials | Shenzhen Silver vs. Guangzhou Boji Medical |
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 Stocks Directory module to find actively traded stocks across global markets.
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