Correlation Between Harbin Air and Jinlong Machinery
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By analyzing existing cross correlation between Harbin Air Conditioning and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Harbin Air and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Jinlong Machinery.
Diversification Opportunities for Harbin Air and Jinlong Machinery
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Jinlong is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Harbin Air i.e., Harbin Air and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Harbin Air and Jinlong Machinery
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 1.37 times more return on investment than Jinlong Machinery. However, Harbin Air is 1.37 times more volatile than Jinlong Machinery Electronic. It trades about -0.04 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.17 per unit of risk. If you would invest 498.00 in Harbin Air Conditioning on October 30, 2024 and sell it today you would lose (52.00) from holding Harbin Air Conditioning or give up 10.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Harbin Air Conditioning |
| Jinlong Machinery |
Harbin Air and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Jinlong Machinery
The main advantage of trading using opposite Harbin Air and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Harbin Air vs. Ming Yang Smart | Harbin Air vs. 159681 | Harbin Air vs. 159005 | Harbin Air vs. Loctek Ergonomic Technology |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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