Correlation Between Harbin Hatou and Cowealth Medical
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By analyzing existing cross correlation between Harbin Hatou Investment and Cowealth Medical China, you can compare the effects of market volatilities on Harbin Hatou and Cowealth Medical 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 Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Cowealth Medical.
Diversification Opportunities for Harbin Hatou and Cowealth Medical
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Cowealth is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Cowealth Medical China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical China 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 Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical China has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Cowealth Medical go up and down completely randomly.
Pair Corralation between Harbin Hatou and Cowealth Medical
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Cowealth Medical. But the stock apears to be less risky and, when comparing its historical volatility, Harbin Hatou Investment is 1.23 times less risky than Cowealth Medical. The stock trades about -0.14 of its potential returns per unit of risk. The Cowealth Medical China is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Cowealth Medical China on September 1, 2024 and sell it today you would lose (46.00) from holding Cowealth Medical China or give up 5.75% 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. Cowealth Medical China
Performance |
| Timeline |
| Harbin Hatou Investment |
| Cowealth Medical China |
Harbin Hatou and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Cowealth Medical
The main advantage of trading using opposite Harbin Hatou and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Cowealth Medical 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 Cowealth Medical will offset losses from the drop in Cowealth Medical's long position.| Harbin Hatou vs. Cambricon Technologies Corp | Harbin Hatou vs. Loongson Technology Corp | Harbin Hatou vs. Shenzhen Fortune Trend | Harbin Hatou vs. Chongqing Road Bridge |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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