Correlation Between Harbin Air and China Petroleum
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By analyzing existing cross correlation between Harbin Air Conditioning and China Petroleum Chemical, you can compare the effects of market volatilities on Harbin Air and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and China Petroleum.
Diversification Opportunities for Harbin Air and China Petroleum
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harbin and China is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Harbin Air i.e., Harbin Air and China Petroleum go up and down completely randomly.
Pair Corralation between Harbin Air and China Petroleum
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to under-perform the China Petroleum. In addition to that, Harbin Air is 1.78 times more volatile than China Petroleum Chemical. It trades about 0.0 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.05 per unit of volatility. If you would invest 435.00 in China Petroleum Chemical on October 27, 2024 and sell it today you would earn a total of 169.00 from holding China Petroleum Chemical or generate 38.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. China Petroleum Chemical
Performance |
| Timeline |
| Harbin Air Conditioning |
| China Petroleum Chemical |
Harbin Air and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and China Petroleum
The main advantage of trading using opposite Harbin Air and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum'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 |
| China Petroleum vs. V V Food | China Petroleum vs. Heren Health Co | China Petroleum vs. Xiwang Foodstuffs Co | China Petroleum vs. Mingchen Health Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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