Correlation Between Harbin Hatou and Shenzhen Kexin
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By analyzing existing cross correlation between Harbin Hatou Investment and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Harbin Hatou and Shenzhen Kexin 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 Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Shenzhen Kexin.
Diversification Opportunities for Harbin Hatou and Shenzhen Kexin
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Harbin Hatou and Shenzhen Kexin
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.17 times more return on investment than Shenzhen Kexin. However, Harbin Hatou is 1.17 times more volatile than Shenzhen Kexin Communication. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.15 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. Shenzhen Kexin Communication
Performance |
| Timeline |
| Harbin Hatou Investment |
| Shenzhen Kexin Commu |
Harbin Hatou and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Shenzhen Kexin
The main advantage of trading using opposite Harbin Hatou and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Shenzhen Kexin 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 Kexin will offset losses from the drop in Shenzhen Kexin'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 Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. China Construction Bank | Shenzhen Kexin vs. Bank of China | Shenzhen Kexin vs. Agricultural Bank of |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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