Correlation Between Harbin Air and COL Digital
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By analyzing existing cross correlation between Harbin Air Conditioning and COL Digital Publishing, you can compare the effects of market volatilities on Harbin Air and COL Digital 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 COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and COL Digital.
Diversification Opportunities for Harbin Air and COL Digital
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and COL is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and COL Digital Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Digital Publishing 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 COL Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Digital Publishing has no effect on the direction of Harbin Air i.e., Harbin Air and COL Digital go up and down completely randomly.
Pair Corralation between Harbin Air and COL Digital
Assuming the 90 days trading horizon Harbin Air is expected to generate 1.34 times less return on investment than COL Digital. But when comparing it to its historical volatility, Harbin Air Conditioning is 1.96 times less risky than COL Digital. It trades about 0.07 of its potential returns per unit of risk. COL Digital Publishing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,158 in COL Digital Publishing on September 27, 2024 and sell it today you would earn a total of 379.00 from holding COL Digital Publishing or generate 17.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. COL Digital Publishing
Performance |
| Timeline |
| Harbin Air Conditioning |
| COL Digital Publishing |
Harbin Air and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and COL Digital
The main advantage of trading using opposite Harbin Air and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, COL Digital 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 COL Digital will offset losses from the drop in COL Digital's long position.| Harbin Air vs. Kweichow Moutai Co | Harbin Air vs. Contemporary Amperex Technology | Harbin Air vs. G bits Network Technology | Harbin Air vs. BYD Co Ltd |
| COL Digital vs. Jiugui Liquor Co | COL Digital vs. Zhongrun Resources Investment | COL Digital vs. Nuode Investment Co | COL Digital vs. Postal Savings Bank |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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