Correlation Between Jiangsu Yueda and Harbin Hatou
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Harbin Hatou Investment, you can compare the effects of market volatilities on Jiangsu Yueda and Harbin Hatou 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 Jiangsu Yueda with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Harbin Hatou.
Diversification Opportunities for Jiangsu Yueda and Harbin Hatou
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Harbin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Harbin Hatou go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Harbin Hatou
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.75 times more return on investment than Harbin Hatou. However, Jiangsu Yueda Investment is 1.33 times less risky than Harbin Hatou. It trades about 0.06 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.14 per unit of risk. If you would invest 462.00 in Jiangsu Yueda Investment on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Jiangsu Yueda Investment or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Harbin Hatou Investment
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Harbin Hatou Investment |
Jiangsu Yueda and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Harbin Hatou
The main advantage of trading using opposite Jiangsu Yueda and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Harbin Hatou 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 Hatou will offset losses from the drop in Harbin Hatou's long position.| Jiangsu Yueda vs. China State Construction | Jiangsu Yueda vs. Poly Real Estate | Jiangsu Yueda vs. China Vanke Co | Jiangsu Yueda vs. China Merchants Shekou |
| Harbin Hatou vs. Cambricon Technologies Corp | Harbin Hatou vs. Loongson Technology Corp | Harbin Hatou vs. Shenzhen Fortune Trend | Harbin Hatou vs. Chongqing Road Bridge |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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