Correlation Between Harbin Hatou and Shenzhen Silver
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By analyzing existing cross correlation between Harbin Hatou Investment and Shenzhen Silver Basis, you can compare the effects of market volatilities on Harbin Hatou and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Shenzhen Silver.
Diversification Opportunities for Harbin Hatou and Shenzhen Silver
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Harbin Hatou and Shenzhen Silver
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.21 times more return on investment than Shenzhen Silver. However, Harbin Hatou is 1.21 times more volatile than Shenzhen Silver Basis. It trades about 0.13 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.13 per unit of risk. If you would invest 714.00 in Harbin Hatou Investment on September 14, 2024 and sell it today you would earn a total of 65.00 from holding Harbin Hatou Investment or generate 9.1% 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. Shenzhen Silver Basis
Performance |
| Timeline |
| Harbin Hatou Investment |
| Shenzhen Silver Basis |
Harbin Hatou and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Shenzhen Silver
The main advantage of trading using opposite Harbin Hatou and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver'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 |
| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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