Correlation Between Harbin Hatou and Success Electronics
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By analyzing existing cross correlation between Harbin Hatou Investment and Success Electronics, you can compare the effects of market volatilities on Harbin Hatou and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Success Electronics.
Diversification Opportunities for Harbin Hatou and Success Electronics
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Harbin and Success is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Success Electronics go up and down completely randomly.
Pair Corralation between Harbin Hatou and Success Electronics
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Success Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Harbin Hatou Investment is 1.04 times less risky than Success Electronics. The stock trades about -0.25 of its potential returns per unit of risk. The Success Electronics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Success Electronics on October 29, 2024 and sell it today you would earn a total of 30.00 from holding Success Electronics or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Success Electronics
Performance |
| Timeline |
| Harbin Hatou Investment |
| Success Electronics |
Harbin Hatou and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Success Electronics
The main advantage of trading using opposite Harbin Hatou and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' 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 |
| Success Electronics vs. Xiandai Investment Co | Success Electronics vs. Beijing Yanjing Brewery | Success Electronics vs. Hunan Investment Group | Success Electronics vs. Eastroc Beverage Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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