Correlation Between Harbin Hatou and Tongyu Communication
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By analyzing existing cross correlation between Harbin Hatou Investment and Tongyu Communication, you can compare the effects of market volatilities on Harbin Hatou and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Tongyu Communication.
Diversification Opportunities for Harbin Hatou and Tongyu Communication
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harbin and Tongyu is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Tongyu Communication go up and down completely randomly.
Pair Corralation between Harbin Hatou and Tongyu Communication
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Tongyu Communication. But the stock apears to be less risky and, when comparing its historical volatility, Harbin Hatou Investment is 1.17 times less risky than Tongyu Communication. The stock trades about -0.13 of its potential returns per unit of risk. The Tongyu Communication is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,426 in Tongyu Communication on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Tongyu Communication or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Tongyu Communication
Performance |
| Timeline |
| Harbin Hatou Investment |
| Tongyu Communication |
Harbin Hatou and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Tongyu Communication
The main advantage of trading using opposite Harbin Hatou and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Harbin Hatou vs. Everdisplay Optronics Shanghai | Harbin Hatou vs. China Sports Industry | Harbin Hatou vs. Ningbo Construction Co | Harbin Hatou vs. Anhui Huilong Agricultural |
| Tongyu Communication vs. Miracll Chemicals Co | Tongyu Communication vs. Gan Yuan Foods | Tongyu Communication vs. Masterwork Machinery | Tongyu Communication vs. Lutian Machinery Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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