Correlation Between Harbin Hatou and Jiujiang Shanshui
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By analyzing existing cross correlation between Harbin Hatou Investment and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Harbin Hatou and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Jiujiang Shanshui.
Diversification Opportunities for Harbin Hatou and Jiujiang Shanshui
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Jiujiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Harbin Hatou and Jiujiang Shanshui
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.21 times more return on investment than Jiujiang Shanshui. However, Harbin Hatou is 1.21 times more volatile than Jiujiang Shanshui Technology. It trades about 0.03 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.01 per unit of risk. If you would invest 508.00 in Harbin Hatou Investment on October 12, 2024 and sell it today you would earn a total of 113.00 from holding Harbin Hatou Investment or generate 22.24% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Harbin Hatou Investment |
| Jiujiang Shanshui |
Harbin Hatou and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Jiujiang Shanshui
The main advantage of trading using opposite Harbin Hatou and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Harbin Hatou vs. Huayi Brothers Media | Harbin Hatou vs. Changjiang Publishing Media | Harbin Hatou vs. Marssenger Kitchenware Co | Harbin Hatou vs. Threes Company Media |
| Jiujiang Shanshui vs. China Eastern Airlines | Jiujiang Shanshui vs. Soyea Technology Co | Jiujiang Shanshui vs. MayAir Technology Co | Jiujiang Shanshui vs. Holitech Technology 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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