Correlation Between Harbin Air and MayAir Technology
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By analyzing existing cross correlation between Harbin Air Conditioning and MayAir Technology Co, you can compare the effects of market volatilities on Harbin Air and MayAir 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 MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and MayAir Technology.
Diversification Opportunities for Harbin Air and MayAir Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and MayAir is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology 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 MayAir Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MayAir Technology has no effect on the direction of Harbin Air i.e., Harbin Air and MayAir Technology go up and down completely randomly.
Pair Corralation between Harbin Air and MayAir Technology
Assuming the 90 days trading horizon Harbin Air Conditioning is expected to generate 0.56 times more return on investment than MayAir Technology. However, Harbin Air Conditioning is 1.8 times less risky than MayAir Technology. It trades about 0.25 of its potential returns per unit of risk. MayAir Technology Co is currently generating about 0.12 per unit of risk. If you would invest 368.00 in Harbin Air Conditioning on September 12, 2024 and sell it today you would earn a total of 159.00 from holding Harbin Air Conditioning or generate 43.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Air Conditioning vs. MayAir Technology Co
Performance |
| Timeline |
| Harbin Air Conditioning |
| MayAir Technology |
Harbin Air and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Air and MayAir Technology
The main advantage of trading using opposite Harbin Air and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, MayAir 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 MayAir Technology will offset losses from the drop in MayAir Technology's long position.| Harbin Air vs. Huaxia Fund Management | Harbin Air vs. Gifore Agricultural Machinery | Harbin Air vs. Qijing Machinery | Harbin Air vs. Hongrun Construction Group |
| MayAir Technology vs. New China Life | MayAir Technology vs. Ming Yang Smart | MayAir Technology vs. 159681 | MayAir Technology vs. 159005 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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