Correlation Between Harbin Hatou and City Development
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By analyzing existing cross correlation between Harbin Hatou Investment and City Development Environment, you can compare the effects of market volatilities on Harbin Hatou and City Development 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 City Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and City Development.
Diversification Opportunities for Harbin Hatou and City Development
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and City is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and City Development Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Development Env 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 City Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Development Env has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and City Development go up and down completely randomly.
Pair Corralation between Harbin Hatou and City Development
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.3 times more return on investment than City Development. However, Harbin Hatou is 1.3 times more volatile than City Development Environment. It trades about 0.05 of its potential returns per unit of risk. City Development Environment is currently generating about 0.05 per unit of risk. If you would invest 465.00 in Harbin Hatou Investment on September 12, 2024 and sell it today you would earn a total of 272.00 from holding Harbin Hatou Investment or generate 58.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. City Development Environment
Performance |
| Timeline |
| Harbin Hatou Investment |
| City Development Env |
Harbin Hatou and City Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and City Development
The main advantage of trading using opposite Harbin Hatou and City Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, City Development 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 City Development will offset losses from the drop in City Development's long position.| Harbin Hatou vs. Nuode Investment Co | Harbin Hatou vs. Xinjiang Communications Construction | Harbin Hatou vs. Vanfund Urban Investment | Harbin Hatou vs. Jiangsu Yueda Investment |
| City Development vs. Zijin Mining Group | City Development vs. Wanhua Chemical Group | City Development vs. Baoshan Iron Steel | City Development vs. Rongsheng Petrochemical Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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