Correlation Between Harbin Hatou and Liuzhou Chemical
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By analyzing existing cross correlation between Harbin Hatou Investment and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Harbin Hatou and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Liuzhou Chemical.
Diversification Opportunities for Harbin Hatou and Liuzhou Chemical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Liuzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Harbin Hatou and Liuzhou Chemical
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Liuzhou Chemical. In addition to that, Harbin Hatou is 1.01 times more volatile than Liuzhou Chemical Industry. It trades about -0.14 of its total potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.11 per unit of volatility. If you would invest 287.00 in Liuzhou Chemical Industry on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Liuzhou Chemical Industry or generate 6.27% 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. Liuzhou Chemical Industry
Performance |
| Timeline |
| Harbin Hatou Investment |
| Liuzhou Chemical Industry |
Harbin Hatou and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Liuzhou Chemical
The main advantage of trading using opposite Harbin Hatou and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| Harbin Hatou vs. Cambricon Technologies Corp | Harbin Hatou vs. Loongson Technology Corp | Harbin Hatou vs. Shenzhen Fortune Trend | Harbin Hatou vs. Chongqing Road Bridge |
| Liuzhou Chemical vs. Zijin Mining Group | Liuzhou Chemical vs. Wanhua Chemical Group | Liuzhou Chemical vs. Baoshan Iron Steel | Liuzhou Chemical vs. Shandong Gold Mining |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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