Correlation Between Harbin Hatou and Jiangxi Copper
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By analyzing existing cross correlation between Harbin Hatou Investment and Jiangxi Copper Co, you can compare the effects of market volatilities on Harbin Hatou and Jiangxi Copper 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 Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Jiangxi Copper.
Diversification Opportunities for Harbin Hatou and Jiangxi Copper
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Jiangxi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper 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 Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Harbin Hatou and Jiangxi Copper
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.33 times more return on investment than Jiangxi Copper. However, Harbin Hatou is 1.33 times more volatile than Jiangxi Copper Co. It trades about 0.05 of its potential returns per unit of risk. Jiangxi Copper Co is currently generating about 0.05 per unit of risk. If you would invest 612.00 in Harbin Hatou Investment on September 5, 2024 and sell it today you would earn a total of 160.00 from holding Harbin Hatou Investment or generate 26.14% 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. Jiangxi Copper Co
Performance |
| Timeline |
| Harbin Hatou Investment |
| Jiangxi Copper |
Harbin Hatou and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Jiangxi Copper
The main advantage of trading using opposite Harbin Hatou and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper's long position.| Harbin Hatou vs. Fujian Oriental Silver | Harbin Hatou vs. Xizi Clean Energy | Harbin Hatou vs. Pengxin International Mining | Harbin Hatou vs. Guangdong Shenglu Telecommunication |
| Jiangxi Copper vs. Suzhou Mingzhi Technology | Jiangxi Copper vs. Guangzhou Ruoyuchen Information | Jiangxi Copper vs. Nanjing Putian Telecommunications | Jiangxi Copper vs. YLZ Information Tech |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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