Correlation Between Rising Nonferrous and Harbin Air
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By analyzing existing cross correlation between Rising Nonferrous Metals and Harbin Air Conditioning, you can compare the effects of market volatilities on Rising Nonferrous and Harbin Air 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 Rising Nonferrous with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Harbin Air.
Diversification Opportunities for Rising Nonferrous and Harbin Air
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rising and Harbin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning and Rising Nonferrous 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 Rising Nonferrous Metals are associated (or correlated) with Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Harbin Air go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Harbin Air
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 9.26 times less return on investment than Harbin Air. In addition to that, Rising Nonferrous is 1.43 times more volatile than Harbin Air Conditioning. It trades about 0.01 of its total potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.09 per unit of volatility. If you would invest 478.00 in Harbin Air Conditioning on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Harbin Air Conditioning or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Harbin Air Conditioning
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Harbin Air Conditioning |
Rising Nonferrous and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Harbin Air
The main advantage of trading using opposite Rising Nonferrous and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| Rising Nonferrous vs. Xiwang Foodstuffs Co | Rising Nonferrous vs. HaiXin Foods Co | Rising Nonferrous vs. Goldlok Toys Holdings | Rising Nonferrous vs. Jinling Hotel Corp |
| Harbin Air vs. PetroChina Co Ltd | Harbin Air vs. China State Construction | Harbin Air vs. China Mobile Limited | Harbin Air vs. Industrial and Commercial |
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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