Correlation Between Harbin Air and Loongson Technology
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By analyzing existing cross correlation between Harbin Air Conditioning and Loongson Technology Corp, you can compare the effects of market volatilities on Harbin Air and Loongson Technology 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 Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Loongson Technology.
Diversification Opportunities for Harbin Air and Loongson Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Loongson is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Harbin Air i.e., Harbin Air and Loongson Technology go up and down completely randomly.
Pair Corralation between Harbin Air and Loongson Technology
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 0.67 times more return on investment than Loongson Technology. However, Harbin Air Conditioning is 1.49 times less risky than Loongson Technology. It trades about 0.25 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about -0.01 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Loongson Technology Corp
Performance |
| Timeline |
| Harbin Air Conditioning |
| Loongson Technology Corp |
Harbin Air and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Loongson Technology
The main advantage of trading using opposite Harbin Air and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology'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 |
| Loongson Technology vs. Silkroad Visual Technology | Loongson Technology vs. Heilongjiang Transport Development | Loongson Technology vs. Harbin Air Conditioning | Loongson Technology vs. Shaanxi Broadcast TV |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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