Correlation Between Harbin Air and Tibet Huayu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Harbin Air Conditioning and Tibet Huayu Mining, you can compare the effects of market volatilities on Harbin Air and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Tibet Huayu.
Diversification Opportunities for Harbin Air and Tibet Huayu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Tibet is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Harbin Air i.e., Harbin Air and Tibet Huayu go up and down completely randomly.
Pair Corralation between Harbin Air and Tibet Huayu
Assuming the 90 days trading horizon Harbin Air is expected to generate 6.83 times less return on investment than Tibet Huayu. But when comparing it to its historical volatility, Harbin Air Conditioning is 2.33 times less risky than Tibet Huayu. It trades about 0.02 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,249 in Tibet Huayu Mining on August 27, 2024 and sell it today you would earn a total of 62.00 from holding Tibet Huayu Mining or generate 4.96% 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. Tibet Huayu Mining
Performance |
| Timeline |
| Harbin Air Conditioning |
| Tibet Huayu Mining |
Harbin Air and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Tibet Huayu
The main advantage of trading using opposite Harbin Air and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu'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 |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |