Correlation Between Harbin Hatou and Jilin Chemical
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By analyzing existing cross correlation between Harbin Hatou Investment and Jilin Chemical Fibre, you can compare the effects of market volatilities on Harbin Hatou and Jilin Chemical 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 Hatou with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Jilin Chemical.
Diversification Opportunities for Harbin Hatou and Jilin Chemical
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Jilin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Harbin Hatou 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 Hatou Investment are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Jilin Chemical go up and down completely randomly.
Pair Corralation between Harbin Hatou and Jilin Chemical
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Jilin Chemical. In addition to that, Harbin Hatou is 1.1 times more volatile than Jilin Chemical Fibre. It trades about -0.14 of its total potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.09 per unit of volatility. If you would invest 396.00 in Jilin Chemical Fibre on September 1, 2024 and sell it today you would lose (23.00) from holding Jilin Chemical Fibre or give up 5.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Harbin Hatou Investment |
| Jilin Chemical Fibre |
Harbin Hatou and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Jilin Chemical
The main advantage of trading using opposite Harbin Hatou and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Harbin Hatou vs. Cambricon Technologies Corp | Harbin Hatou vs. Loongson Technology Corp | Harbin Hatou vs. Shenzhen Fortune Trend | Harbin Hatou vs. Chongqing Road Bridge |
| Jilin Chemical vs. Xiwang Foodstuffs Co | Jilin Chemical vs. Yingde Greatchem Chemicals | Jilin Chemical vs. Miracll Chemicals Co | Jilin Chemical vs. Youyou Foods Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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