Correlation Between Harbin Air and Hubei Huaqiang
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By analyzing existing cross correlation between Harbin Air Conditioning and Hubei Huaqiang High Tech, you can compare the effects of market volatilities on Harbin Air and Hubei Huaqiang 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 Hubei Huaqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Hubei Huaqiang.
Diversification Opportunities for Harbin Air and Hubei Huaqiang
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Hubei is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Hubei Huaqiang High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Huaqiang High 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 Hubei Huaqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Huaqiang High has no effect on the direction of Harbin Air i.e., Harbin Air and Hubei Huaqiang go up and down completely randomly.
Pair Corralation between Harbin Air and Hubei Huaqiang
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 1.25 times more return on investment than Hubei Huaqiang. However, Harbin Air is 1.25 times more volatile than Hubei Huaqiang High Tech. It trades about 0.02 of its potential returns per unit of risk. Hubei Huaqiang High Tech is currently generating about 0.0 per unit of risk. If you would invest 486.00 in Harbin Air Conditioning on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Harbin Air Conditioning or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Harbin Air Conditioning vs. Hubei Huaqiang High Tech
Performance |
| Timeline |
| Harbin Air Conditioning |
| Hubei Huaqiang High |
Harbin Air and Hubei Huaqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and Hubei Huaqiang
The main advantage of trading using opposite Harbin Air and Hubei Huaqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Hubei Huaqiang 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 Hubei Huaqiang will offset losses from the drop in Hubei Huaqiang's long position.| Harbin Air vs. Agricultural Bank of | Harbin Air vs. Industrial and Commercial | Harbin Air vs. Bank of China | Harbin Air vs. PetroChina Co Ltd |
| Hubei Huaqiang vs. Dhc Software Co | Hubei Huaqiang vs. Inspur Software Co | Hubei Huaqiang vs. Union Semiconductor Co | Hubei Huaqiang vs. Shenzhen Clou Electronics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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