Correlation Between Harbin Air and Nanjing OLO
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By analyzing existing cross correlation between Harbin Air Conditioning and Nanjing OLO Home, you can compare the effects of market volatilities on Harbin Air and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Nanjing OLO.
Diversification Opportunities for Harbin Air and Nanjing OLO
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Nanjing is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Harbin Air i.e., Harbin Air and Nanjing OLO go up and down completely randomly.
Pair Corralation between Harbin Air and Nanjing OLO
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 0.93 times more return on investment than Nanjing OLO. However, Harbin Air Conditioning is 1.07 times less risky than Nanjing OLO. It trades about 0.0 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about -0.01 per unit of risk. If you would invest 568.00 in Harbin Air Conditioning on October 31, 2024 and sell it today you would lose (122.00) from holding Harbin Air Conditioning or give up 21.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Nanjing OLO Home
Performance |
| Timeline |
| Harbin Air Conditioning |
| Nanjing OLO Home |
Harbin Air and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Nanjing OLO
The main advantage of trading using opposite Harbin Air and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.| Harbin Air vs. Guangzhou Seagull Kitchen | Harbin Air vs. Chahua Modern Housewares | Harbin Air vs. Marssenger Kitchenware Co | Harbin Air vs. Nexchip Semiconductor Corp |
| Nanjing OLO vs. Cloud Live Technology | Nanjing OLO vs. Nanjing Putian Telecommunications | Nanjing OLO vs. Shenzhen Coship Electronics | Nanjing OLO vs. Shenzhen Hifuture Electric |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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