Correlation Between Harbin Hatou and Cultural Investment
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By analyzing existing cross correlation between Harbin Hatou Investment and Cultural Investment Holdings, you can compare the effects of market volatilities on Harbin Hatou and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Cultural Investment.
Diversification Opportunities for Harbin Hatou and Cultural Investment
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Cultural is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Cultural Investment go up and down completely randomly.
Pair Corralation between Harbin Hatou and Cultural Investment
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Cultural Investment. In addition to that, Harbin Hatou is 1.46 times more volatile than Cultural Investment Holdings. It trades about -0.13 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.13 per unit of volatility. If you would invest 218.00 in Cultural Investment Holdings on November 3, 2024 and sell it today you would lose (9.00) from holding Cultural Investment Holdings or give up 4.13% 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. Cultural Investment Holdings
Performance |
| Timeline |
| Harbin Hatou Investment |
| Cultural Investment |
Harbin Hatou and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Cultural Investment
The main advantage of trading using opposite Harbin Hatou and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Harbin Hatou vs. Everdisplay Optronics Shanghai | Harbin Hatou vs. China Sports Industry | Harbin Hatou vs. Ningbo Construction Co | Harbin Hatou vs. Anhui Huilong Agricultural |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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