Correlation Between Harbin Air and Lecron Energy
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By analyzing existing cross correlation between Harbin Air Conditioning and Lecron Energy Saving, you can compare the effects of market volatilities on Harbin Air and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Lecron Energy.
Diversification Opportunities for Harbin Air and Lecron Energy
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Lecron is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Harbin Air i.e., Harbin Air and Lecron Energy go up and down completely randomly.
Pair Corralation between Harbin Air and Lecron Energy
Assuming the 90 days trading horizon Harbin Air is expected to generate 1.42 times less return on investment than Lecron Energy. In addition to that, Harbin Air is 2.17 times more volatile than Lecron Energy Saving. It trades about 0.06 of its total potential returns per unit of risk. Lecron Energy Saving is currently generating about 0.19 per unit of volatility. If you would invest 524.00 in Lecron Energy Saving on November 4, 2024 and sell it today you would earn a total of 46.00 from holding Lecron Energy Saving or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Lecron Energy Saving
Performance |
| Timeline |
| Harbin Air Conditioning |
| Lecron Energy Saving |
Harbin Air and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Lecron Energy
The main advantage of trading using opposite Harbin Air and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Harbin Air vs. Anhui Tongguan Copper | Harbin Air vs. Shanghai Yanpu Metal | Harbin Air vs. JCHX Mining Management | Harbin Air vs. North Copper Shanxi |
| Lecron Energy vs. Ningbo Tech Bank Co | Lecron Energy vs. Bank of Suzhou | Lecron Energy vs. Ping An Insurance | Lecron Energy vs. HeNan Splendor Science |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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