Correlation Between Harbin Hatou and Inner Mongolia
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By analyzing existing cross correlation between Harbin Hatou Investment and Inner Mongolia Dazhong, you can compare the effects of market volatilities on Harbin Hatou and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Inner Mongolia.
Diversification Opportunities for Harbin Hatou and Inner Mongolia
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Inner is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Inner Mongolia Dazhong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Dazhong 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Dazhong has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Inner Mongolia go up and down completely randomly.
Pair Corralation between Harbin Hatou and Inner Mongolia
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.2 times more return on investment than Inner Mongolia. However, Harbin Hatou is 1.2 times more volatile than Inner Mongolia Dazhong. It trades about 0.11 of its potential returns per unit of risk. Inner Mongolia Dazhong is currently generating about -0.02 per unit of risk. If you would invest 697.00 in Harbin Hatou Investment on September 15, 2024 and sell it today you would earn a total of 55.00 from holding Harbin Hatou Investment or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Inner Mongolia Dazhong
Performance |
| Timeline |
| Harbin Hatou Investment |
| Inner Mongolia Dazhong |
Harbin Hatou and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Inner Mongolia
The main advantage of trading using opposite Harbin Hatou and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Harbin Hatou vs. Industrial and Commercial | Harbin Hatou vs. Agricultural Bank of | Harbin Hatou vs. China Construction Bank | Harbin Hatou vs. Bank of China |
| Inner Mongolia vs. Jiangsu Financial Leasing | Inner Mongolia vs. Harbin Hatou Investment | Inner Mongolia vs. China Construction Bank | Inner Mongolia vs. Beijing Mainstreets Investment |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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