Correlation Between Harbin Hatou and Maoming Petro
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By analyzing existing cross correlation between Harbin Hatou Investment and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Harbin Hatou and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Maoming Petro.
Diversification Opportunities for Harbin Hatou and Maoming Petro
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Maoming is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Maoming Petro go up and down completely randomly.
Pair Corralation between Harbin Hatou and Maoming Petro
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Maoming Petro. In addition to that, Harbin Hatou is 1.47 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.13 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.04 per unit of volatility. If you would invest 369.00 in Maoming Petro Chemical Shihua on November 3, 2024 and sell it today you would lose (6.00) from holding Maoming Petro Chemical Shihua or give up 1.63% 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. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Harbin Hatou Investment |
| Maoming Petro Chemical |
Harbin Hatou and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Maoming Petro
The main advantage of trading using opposite Harbin Hatou and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Harbin Hatou vs. Dhc Software Co | Harbin Hatou vs. Glodon Software Co | Harbin Hatou vs. Lander Sports Development | Harbin Hatou vs. Linkage Software Co |
| Maoming Petro vs. Changzhou Evergreen Technology | Maoming Petro vs. Dingli Communications Corp | Maoming Petro vs. Beijing Bewinner Communications | Maoming Petro vs. Guangzhou KingTeller Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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