Correlation Between Harbin Hatou and Lonkey Industrial
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By analyzing existing cross correlation between Harbin Hatou Investment and Lonkey Industrial Co, you can compare the effects of market volatilities on Harbin Hatou and Lonkey Industrial 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 Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Lonkey Industrial.
Diversification Opportunities for Harbin Hatou and Lonkey Industrial
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Lonkey is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial 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 Lonkey Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonkey Industrial has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Harbin Hatou and Lonkey Industrial
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.13 times more return on investment than Lonkey Industrial. However, Harbin Hatou is 1.13 times more volatile than Lonkey Industrial Co. It trades about -0.22 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about -0.28 per unit of risk. If you would invest 737.00 in Harbin Hatou Investment on October 11, 2024 and sell it today you would lose (112.00) from holding Harbin Hatou Investment or give up 15.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Lonkey Industrial Co
Performance |
| Timeline |
| Harbin Hatou Investment |
| Lonkey Industrial |
Harbin Hatou and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Lonkey Industrial
The main advantage of trading using opposite Harbin Hatou and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Lonkey Industrial 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 Lonkey Industrial will offset losses from the drop in Lonkey Industrial's long position.| Harbin Hatou vs. Guangzhou Ruoyuchen Information | Harbin Hatou vs. Jiajia Food Group | Harbin Hatou vs. AVCON Information Tech | Harbin Hatou vs. Jinzai Food Group |
| Lonkey Industrial vs. Hubei Geoway Investment | Lonkey Industrial vs. Zoje Resources Investment | Lonkey Industrial vs. Shuhua Sports Co | Lonkey Industrial vs. Tieling Newcity Investment |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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