Correlation Between Harbin Hatou and DR
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By analyzing existing cross correlation between Harbin Hatou Investment and DR Limited, you can compare the effects of market volatilities on Harbin Hatou and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and DR.
Diversification Opportunities for Harbin Hatou and DR
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and DR is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and DR go up and down completely randomly.
Pair Corralation between Harbin Hatou and DR
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 0.88 times more return on investment than DR. However, Harbin Hatou Investment is 1.14 times less risky than DR. It trades about 0.03 of its potential returns per unit of risk. DR Limited is currently generating about 0.0 per unit of risk. If you would invest 612.00 in Harbin Hatou Investment on September 4, 2024 and sell it today you would earn a total of 90.00 from holding Harbin Hatou Investment or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. DR Limited
Performance |
| Timeline |
| Harbin Hatou Investment |
| DR Limited |
Harbin Hatou and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and DR
The main advantage of trading using opposite Harbin Hatou and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, DR 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 DR will offset losses from the drop in DR's long position.| Harbin Hatou vs. Ping An Insurance | Harbin Hatou vs. CICC Fund Management | Harbin Hatou vs. AVIC Fund Management | Harbin Hatou vs. Caihong Display Devices |
| DR vs. Ligao Foods CoLtd | DR vs. Cultural Investment Holdings | DR vs. Harbin Hatou Investment | DR vs. Xiandai Investment 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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