Correlation Between Harbin Hatou and Hunan Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Harbin Hatou Investment and Hunan Investment Group, you can compare the effects of market volatilities on Harbin Hatou and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Hunan Investment.
Diversification Opportunities for Harbin Hatou and Hunan Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Hunan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Hunan Investment go up and down completely randomly.
Pair Corralation between Harbin Hatou and Hunan Investment
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Hunan Investment. But the stock apears to be less risky and, when comparing its historical volatility, Harbin Hatou Investment is 1.24 times less risky than Hunan Investment. The stock trades about -0.14 of its potential returns per unit of risk. The Hunan Investment Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 506.00 in Hunan Investment Group on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Hunan Investment Group or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Hunan Investment Group
Performance |
| Timeline |
| Harbin Hatou Investment |
| Hunan Investment |
Harbin Hatou and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Hunan Investment
The main advantage of trading using opposite Harbin Hatou and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment'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 |
| Hunan Investment vs. Jiangsu Phoenix Publishing | Hunan Investment vs. Union Semiconductor Co | Hunan Investment vs. China Publishing Media | Hunan Investment vs. GigaDevice SemiconductorBeiji |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |