Correlation Between Harbin Hatou and Henan Shuanghui
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By analyzing existing cross correlation between Harbin Hatou Investment and Henan Shuanghui Investment, you can compare the effects of market volatilities on Harbin Hatou and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Henan Shuanghui.
Diversification Opportunities for Harbin Hatou and Henan Shuanghui
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Henan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Harbin Hatou and Henan Shuanghui
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Henan Shuanghui. In addition to that, Harbin Hatou is 3.12 times more volatile than Henan Shuanghui Investment. It trades about -0.22 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about -0.2 per unit of volatility. If you would invest 2,610 in Henan Shuanghui Investment on October 25, 2024 and sell it today you would lose (109.00) from holding Henan Shuanghui Investment or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Harbin Hatou Investment |
| Henan Shuanghui Inve |
Harbin Hatou and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Henan Shuanghui
The main advantage of trading using opposite Harbin Hatou and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Harbin Hatou vs. Gansu Jiu Steel | Harbin Hatou vs. Ming Yang Smart | Harbin Hatou vs. Aba Chemicals Corp | Harbin Hatou vs. Loctek Ergonomic Technology |
| Henan Shuanghui vs. XiaMen HongXin Electron tech | Henan Shuanghui vs. Dhc Software Co | Henan Shuanghui vs. Montage Technology Co | Henan Shuanghui vs. Changchun UP Optotech |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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