Correlation Between Caihong Display and Harbin Air
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By analyzing existing cross correlation between Caihong Display Devices and Harbin Air Conditioning, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Harbin Air.
Diversification Opportunities for Caihong Display and Harbin Air
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Caihong and Harbin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices 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 Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Harbin Air go up and down completely randomly.
Pair Corralation between Caihong Display and Harbin Air
Assuming the 90 days trading horizon Caihong Display Devices is expected to under-perform the Harbin Air. In addition to that, Caihong Display is 1.15 times more volatile than Harbin Air Conditioning. It trades about -0.11 of its total potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.12 per unit of volatility. If you would invest 478.00 in Harbin Air Conditioning on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Harbin Air Conditioning or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Harbin Air Conditioning
Performance |
| Timeline |
| Caihong Display Devices |
| Harbin Air Conditioning |
Caihong Display and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Harbin Air
The main advantage of trading using opposite Caihong Display and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Nanjing Putian Telecommunications | Caihong Display vs. Shenzhen Hifuture Electric | Caihong Display vs. Shenyang Huitian Thermal | Caihong Display vs. Jiangsu Xinning Modern |
| Harbin Air vs. Agricultural Bank of | Harbin Air vs. Industrial and Commercial | Harbin Air vs. Bank of China | Harbin Air vs. China Construction Bank |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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