Correlation Between Harbin Hatou and Dawning Information
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By analyzing existing cross correlation between Harbin Hatou Investment and Dawning Information Industry, you can compare the effects of market volatilities on Harbin Hatou and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Dawning Information.
Diversification Opportunities for Harbin Hatou and Dawning Information
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Dawning is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Dawning Information go up and down completely randomly.
Pair Corralation between Harbin Hatou and Dawning Information
Assuming the 90 days trading horizon Harbin Hatou is expected to generate 7.6 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Harbin Hatou Investment is 1.17 times less risky than Dawning Information. It trades about 0.01 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,200 in Dawning Information Industry on October 14, 2024 and sell it today you would earn a total of 966.00 from holding Dawning Information Industry or generate 18.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Dawning Information Industry
Performance |
| Timeline |
| Harbin Hatou Investment |
| Dawning Information |
Harbin Hatou and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Dawning Information
The main advantage of trading using opposite Harbin Hatou and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Harbin Hatou vs. Dongfeng Automobile Co | Harbin Hatou vs. Guotai Epoint Software | Harbin Hatou vs. Anhui Jianghuai Automobile | Harbin Hatou vs. Beijing Baolande Software |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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