Correlation Between Harbin Air and Guangdong Marubi
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By analyzing existing cross correlation between Harbin Air Conditioning and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Harbin Air and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Guangdong Marubi.
Diversification Opportunities for Harbin Air and Guangdong Marubi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Guangdong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Harbin Air i.e., Harbin Air and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Harbin Air and Guangdong Marubi
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 0.7 times more return on investment than Guangdong Marubi. However, Harbin Air Conditioning is 1.43 times less risky than Guangdong Marubi. It trades about 0.25 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.11 per unit of risk. If you would invest 482.00 in Harbin Air Conditioning on September 14, 2024 and sell it today you would earn a total of 56.00 from holding Harbin Air Conditioning or generate 11.62% 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. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Harbin Air Conditioning |
| Guangdong Marubi Bio |
Harbin Air and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Guangdong Marubi
The main advantage of trading using opposite Harbin Air and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Harbin Air vs. PetroChina Co Ltd | Harbin Air vs. China Mobile Limited | Harbin Air vs. CNOOC Limited | Harbin Air vs. Ping An Insurance |
| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. Bank of China | Guangdong Marubi vs. PetroChina Co Ltd |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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