Correlation Between Harbin Hatou and Chengdu Xingrong
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By analyzing existing cross correlation between Harbin Hatou Investment and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Harbin Hatou and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Chengdu Xingrong.
Diversification Opportunities for Harbin Hatou and Chengdu Xingrong
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Chengdu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Harbin Hatou and Chengdu Xingrong
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Chengdu Xingrong. In addition to that, Harbin Hatou is 1.63 times more volatile than Chengdu Xingrong Investment. It trades about -0.14 of its total potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.1 per unit of volatility. If you would invest 738.00 in Chengdu Xingrong Investment on September 1, 2024 and sell it today you would lose (33.00) from holding Chengdu Xingrong Investment or give up 4.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Harbin Hatou Investment |
| Chengdu Xingrong Inv |
Harbin Hatou and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Chengdu Xingrong
The main advantage of trading using opposite Harbin Hatou and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong'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 |
| Chengdu Xingrong vs. Lutian Machinery Co | Chengdu Xingrong vs. China Longyuan Power | Chengdu Xingrong vs. PetroChina Co Ltd | Chengdu Xingrong vs. Bank of China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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