Correlation Between Harbin Hatou and Jiangyin Jianghua
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By analyzing existing cross correlation between Harbin Hatou Investment and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Harbin Hatou and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Jiangyin Jianghua.
Diversification Opportunities for Harbin Hatou and Jiangyin Jianghua
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Jiangyin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Harbin Hatou and Jiangyin Jianghua
Assuming the 90 days trading horizon Harbin Hatou is expected to generate 4.72 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, Harbin Hatou Investment is 1.45 times less risky than Jiangyin Jianghua. It trades about 0.04 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,705 in Jiangyin Jianghua Microelectronics on September 13, 2024 and sell it today you would earn a total of 185.00 from holding Jiangyin Jianghua Microelectronics or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Harbin Hatou Investment |
| Jiangyin Jianghua |
Harbin Hatou and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Jiangyin Jianghua
The main advantage of trading using opposite Harbin Hatou and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua'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 |
| Jiangyin Jianghua vs. Nanjing Putian Telecommunications | Jiangyin Jianghua vs. Tianjin Realty Development | Jiangyin Jianghua vs. Kangyue Technology Co | Jiangyin Jianghua vs. Shenzhen Hifuture Electric |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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