Correlation Between Harbin Air and Shanghai Phichem
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By analyzing existing cross correlation between Harbin Air Conditioning and Shanghai Phichem Material, you can compare the effects of market volatilities on Harbin Air and Shanghai Phichem 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 Shanghai Phichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Shanghai Phichem.
Diversification Opportunities for Harbin Air and Shanghai Phichem
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harbin and Shanghai is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Shanghai Phichem Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Phichem Material 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 Shanghai Phichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Phichem Material has no effect on the direction of Harbin Air i.e., Harbin Air and Shanghai Phichem go up and down completely randomly.
Pair Corralation between Harbin Air and Shanghai Phichem
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to under-perform the Shanghai Phichem. But the stock apears to be less risky and, when comparing its historical volatility, Harbin Air Conditioning is 1.17 times less risky than Shanghai Phichem. The stock trades about 0.0 of its potential returns per unit of risk. The Shanghai Phichem Material is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,843 in Shanghai Phichem Material on October 27, 2024 and sell it today you would lose (229.00) from holding Shanghai Phichem Material or give up 12.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Shanghai Phichem Material
Performance |
| Timeline |
| Harbin Air Conditioning |
| Shanghai Phichem Material |
Harbin Air and Shanghai Phichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Shanghai Phichem
The main advantage of trading using opposite Harbin Air and Shanghai Phichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Shanghai Phichem 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 Shanghai Phichem will offset losses from the drop in Shanghai Phichem's long position.| Harbin Air vs. Haima Automobile Group | Harbin Air vs. Quectel Wireless Solutions | Harbin Air vs. Wuxi Xuelang Environmental | Harbin Air vs. Jilin Jlu Communication |
| Shanghai Phichem vs. COL Digital Publishing | Shanghai Phichem vs. Jiangsu Phoenix Publishing | Shanghai Phichem vs. Offcn Education Technology | Shanghai Phichem vs. Chengtun Mining Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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