Correlation Between Harbin Air and Dongguan Chitwing
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By analyzing existing cross correlation between Harbin Air Conditioning and Dongguan Chitwing Technology, you can compare the effects of market volatilities on Harbin Air and Dongguan Chitwing 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 Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Dongguan Chitwing.
Diversification Opportunities for Harbin Air and Dongguan Chitwing
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Dongguan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing 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 Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of Harbin Air i.e., Harbin Air and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between Harbin Air and Dongguan Chitwing
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to under-perform the Dongguan Chitwing. But the stock apears to be less risky and, when comparing its historical volatility, Harbin Air Conditioning is 1.44 times less risky than Dongguan Chitwing. The stock trades about -0.02 of its potential returns per unit of risk. The Dongguan Chitwing Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,300 in Dongguan Chitwing Technology on August 29, 2024 and sell it today you would lose (919.00) from holding Dongguan Chitwing Technology or give up 27.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Dongguan Chitwing Technology
Performance |
| Timeline |
| Harbin Air Conditioning |
| Dongguan Chitwing |
Harbin Air and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Dongguan Chitwing
The main advantage of trading using opposite Harbin Air and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing's long position.| Harbin Air vs. PetroChina Co Ltd | Harbin Air vs. China State Construction | Harbin Air vs. China Mobile Limited | Harbin Air vs. Industrial and Commercial |
| Dongguan Chitwing vs. Glodon Software Co | Dongguan Chitwing vs. Shenzhen Topway Video | Dongguan Chitwing vs. Shenzhen Bioeasy Biotechnology | Dongguan Chitwing vs. ZYF Lopsking Aluminum |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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