Correlation Between Harbin Hatou and Jiangsu Changfa
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By analyzing existing cross correlation between Harbin Hatou Investment and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Harbin Hatou and Jiangsu Changfa 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 Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Jiangsu Changfa.
Diversification Opportunities for Harbin Hatou and Jiangsu Changfa
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Jiangsu is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr 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 Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Harbin Hatou and Jiangsu Changfa
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 0.92 times more return on investment than Jiangsu Changfa. However, Harbin Hatou Investment is 1.08 times less risky than Jiangsu Changfa. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.01 per unit of risk. If you would invest 494.00 in Harbin Hatou Investment on September 3, 2024 and sell it today you would earn a total of 178.00 from holding Harbin Hatou Investment or generate 36.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Harbin Hatou Investment |
| Jiangsu Changfa Refr |
Harbin Hatou and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Jiangsu Changfa
The main advantage of trading using opposite Harbin Hatou and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Jiangsu Changfa 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 Jiangsu Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Harbin Hatou vs. Linewell Software Co | Harbin Hatou vs. Maxvision Technology Corp | Harbin Hatou vs. Sportsoul Co Ltd | Harbin Hatou vs. Hubei Forbon Technology |
| Jiangsu Changfa vs. Guangzhou Haige Communications | Jiangsu Changfa vs. Shaanxi Meineng Clean | Jiangsu Changfa vs. State Grid InformationCommunication | Jiangsu Changfa vs. Tianjin Hi Tech Development |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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