Correlation Between Harbin Hatou and Ningxia Baofeng
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By analyzing existing cross correlation between Harbin Hatou Investment and Ningxia Baofeng Energy, you can compare the effects of market volatilities on Harbin Hatou and Ningxia Baofeng 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 Ningxia Baofeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Ningxia Baofeng.
Diversification Opportunities for Harbin Hatou and Ningxia Baofeng
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Ningxia is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Ningxia Baofeng Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Baofeng Energy 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 Ningxia Baofeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Baofeng Energy has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Ningxia Baofeng go up and down completely randomly.
Pair Corralation between Harbin Hatou and Ningxia Baofeng
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.54 times more return on investment than Ningxia Baofeng. However, Harbin Hatou is 1.54 times more volatile than Ningxia Baofeng Energy. It trades about 0.05 of its potential returns per unit of risk. Ningxia Baofeng Energy is currently generating about 0.04 per unit of risk. If you would invest 468.00 in Harbin Hatou Investment on September 13, 2024 and sell it today you would earn a total of 266.00 from holding Harbin Hatou Investment or generate 56.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Ningxia Baofeng Energy
Performance |
| Timeline |
| Harbin Hatou Investment |
| Ningxia Baofeng Energy |
Harbin Hatou and Ningxia Baofeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Ningxia Baofeng
The main advantage of trading using opposite Harbin Hatou and Ningxia Baofeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Ningxia Baofeng 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 Ningxia Baofeng will offset losses from the drop in Ningxia Baofeng'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 |
| Ningxia Baofeng vs. Metro Investment Development | Ningxia Baofeng vs. Harbin Hatou Investment | Ningxia Baofeng vs. Henan Shuanghui Investment | Ningxia Baofeng vs. HaiXin Foods Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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