Correlation Between Harbin Hatou and Zhongzhu Medical
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By analyzing existing cross correlation between Harbin Hatou Investment and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Harbin Hatou and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Zhongzhu Medical.
Diversification Opportunities for Harbin Hatou and Zhongzhu Medical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Zhongzhu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Harbin Hatou and Zhongzhu Medical
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.46 times more return on investment than Zhongzhu Medical. However, Harbin Hatou is 1.46 times more volatile than Zhongzhu Medical Holdings. It trades about -0.02 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.11 per unit of risk. If you would invest 672.00 in Harbin Hatou Investment on October 30, 2024 and sell it today you would lose (35.00) from holding Harbin Hatou Investment or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Harbin Hatou Investment |
| Zhongzhu Medical Holdings |
Harbin Hatou and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Zhongzhu Medical
The main advantage of trading using opposite Harbin Hatou and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Harbin Hatou vs. Kontour Medical Technology | Harbin Hatou vs. APT Medical | Harbin Hatou vs. Malion New Materials | Harbin Hatou vs. Capitalonline Data Service |
| Zhongzhu Medical vs. Beijing Sanyuan Foods | Zhongzhu Medical vs. Great Sun Foods Co | Zhongzhu Medical vs. HaiXin Foods Co | Zhongzhu Medical vs. China Mobile Limited |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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