Correlation Between Harbin Hatou and Beijing Shunxin
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By analyzing existing cross correlation between Harbin Hatou Investment and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Harbin Hatou and Beijing Shunxin 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 Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Beijing Shunxin.
Diversification Opportunities for Harbin Hatou and Beijing Shunxin
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Beijing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Harbin Hatou and Beijing Shunxin
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Beijing Shunxin. In addition to that, Harbin Hatou is 1.41 times more volatile than Beijing Shunxin Agriculture. It trades about -0.25 of its total potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.3 per unit of volatility. If you would invest 1,940 in Beijing Shunxin Agriculture on October 29, 2024 and sell it today you would lose (227.00) from holding Beijing Shunxin Agriculture or give up 11.7% 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. Beijing Shunxin Agriculture
Performance |
| Timeline |
| Harbin Hatou Investment |
| Beijing Shunxin Agri |
Harbin Hatou and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Beijing Shunxin
The main advantage of trading using opposite Harbin Hatou and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| Harbin Hatou vs. Shenyang Huitian Thermal | Harbin Hatou vs. Shaanxi Construction Machinery | Harbin Hatou vs. Guangzhou KDT Machinery | Harbin Hatou vs. Linzhou Heavy Machinery |
| Beijing Shunxin vs. Chengdu Kanghua Biological | Beijing Shunxin vs. Beijing Wantai Biological | Beijing Shunxin vs. Suzhou Novoprotein Scientific | Beijing Shunxin vs. Aluminum Corp of |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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