Correlation Between Harbin Hatou and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Harbin Hatou Investment and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Harbin Hatou and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Fiberhome Telecommunicatio.
Diversification Opportunities for Harbin Hatou and Fiberhome Telecommunicatio
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Fiberhome is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Harbin Hatou and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 2.06 times more return on investment than Fiberhome Telecommunicatio. However, Harbin Hatou is 2.06 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.11 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.13 per unit of risk. If you would invest 697.00 in Harbin Hatou Investment on September 15, 2024 and sell it today you would earn a total of 55.00 from holding Harbin Hatou Investment or generate 7.89% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Harbin Hatou Investment |
| Fiberhome Telecommunicatio |
Harbin Hatou and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Fiberhome Telecommunicatio
The main advantage of trading using opposite Harbin Hatou and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Harbin Hatou vs. Industrial and Commercial | Harbin Hatou vs. Agricultural Bank of | Harbin Hatou vs. China Construction Bank | Harbin Hatou vs. Bank of China |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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