Correlation Between Harbin Air and Pengxin International
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By analyzing existing cross correlation between Harbin Air Conditioning and Pengxin International Mining, you can compare the effects of market volatilities on Harbin Air and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Pengxin International.
Diversification Opportunities for Harbin Air and Pengxin International
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Pengxin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Harbin Air i.e., Harbin Air and Pengxin International go up and down completely randomly.
Pair Corralation between Harbin Air and Pengxin International
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 0.75 times more return on investment than Pengxin International. However, Harbin Air Conditioning is 1.33 times less risky than Pengxin International. It trades about 0.12 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.06 per unit of risk. If you would invest 478.00 in Harbin Air Conditioning on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Harbin Air Conditioning or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Pengxin International Mining
Performance |
| Timeline |
| Harbin Air Conditioning |
| Pengxin International |
Harbin Air and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Pengxin International
The main advantage of trading using opposite Harbin Air and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Harbin Air vs. Agricultural Bank of | Harbin Air vs. Industrial and Commercial | Harbin Air vs. Bank of China | Harbin Air vs. China Construction Bank |
| Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Shandong Gold Mining | Pengxin International vs. Rongsheng Petrochemical Co | Pengxin International vs. Inner Mongolia BaoTou |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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