Correlation Between Harbin Hatou and Sichuan Hebang
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By analyzing existing cross correlation between Harbin Hatou Investment and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Harbin Hatou and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Sichuan Hebang.
Diversification Opportunities for Harbin Hatou and Sichuan Hebang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Sichuan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Harbin Hatou and Sichuan Hebang
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 2.15 times more return on investment than Sichuan Hebang. However, Harbin Hatou is 2.15 times more volatile than Sichuan Hebang Biotechnology. It trades about -0.01 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.14 per unit of risk. If you would invest 662.00 in Harbin Hatou Investment on August 29, 2024 and sell it today you would lose (14.00) from holding Harbin Hatou Investment or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Harbin Hatou Investment |
| Sichuan Hebang Biote |
Harbin Hatou and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Sichuan Hebang
The main advantage of trading using opposite Harbin Hatou and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Harbin Hatou vs. Changchun Faway Automobile | Harbin Hatou vs. Allmed Medical Products | Harbin Hatou vs. Sunny Loan Top | Harbin Hatou vs. Winner Medical Co |
| Sichuan Hebang vs. Zijin Mining Group | Sichuan Hebang vs. Wanhua Chemical Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Shandong Gold Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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