Correlation Between Harbin Hatou and Xinjiang Tianrun
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By analyzing existing cross correlation between Harbin Hatou Investment and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Harbin Hatou and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Xinjiang Tianrun.
Diversification Opportunities for Harbin Hatou and Xinjiang Tianrun
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Xinjiang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Harbin Hatou and Xinjiang Tianrun
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.18 times more return on investment than Xinjiang Tianrun. However, Harbin Hatou is 1.18 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.01 per unit of risk. If you would invest 569.00 in Harbin Hatou Investment on October 29, 2024 and sell it today you would earn a total of 86.00 from holding Harbin Hatou Investment or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Harbin Hatou Investment |
| Xinjiang Tianrun Dairy |
Harbin Hatou and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Xinjiang Tianrun
The main advantage of trading using opposite Harbin Hatou and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Harbin Hatou vs. Shenyang Huitian Thermal | Harbin Hatou vs. Shaanxi Construction Machinery | Harbin Hatou vs. Guangzhou KDT Machinery | Harbin Hatou vs. Linzhou Heavy Machinery |
| Xinjiang Tianrun vs. Wasu Media Holding | Xinjiang Tianrun vs. Chinese Universe Publishing | Xinjiang Tianrun vs. Zhejiang Publishing Media | Xinjiang Tianrun vs. Shanghai Xinhua Media |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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