Correlation Between Harbin Hatou and Shanghai
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By analyzing existing cross correlation between Harbin Hatou Investment and Shanghai MG Stationery, you can compare the effects of market volatilities on Harbin Hatou and Shanghai 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 Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Shanghai.
Diversification Opportunities for Harbin Hatou and Shanghai
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Shanghai is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Shanghai MG Stationery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai MG Stationery 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 Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai MG Stationery has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Shanghai go up and down completely randomly.
Pair Corralation between Harbin Hatou and Shanghai
Assuming the 90 days trading horizon Harbin Hatou is expected to generate 4.95 times less return on investment than Shanghai. In addition to that, Harbin Hatou is 1.16 times more volatile than Shanghai MG Stationery. It trades about 0.01 of its total potential returns per unit of risk. Shanghai MG Stationery is currently generating about 0.04 per unit of volatility. If you would invest 3,116 in Shanghai MG Stationery on September 12, 2024 and sell it today you would earn a total of 58.00 from holding Shanghai MG Stationery or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Shanghai MG Stationery
Performance |
| Timeline |
| Harbin Hatou Investment |
| Shanghai MG Stationery |
Harbin Hatou and Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Shanghai
The main advantage of trading using opposite Harbin Hatou and Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Shanghai 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 Shanghai will offset losses from the drop in Shanghai's long position.| Harbin Hatou vs. Nuode Investment Co | Harbin Hatou vs. Xinjiang Communications Construction | Harbin Hatou vs. Vanfund Urban Investment | Harbin Hatou vs. Jiangsu Yueda Investment |
| Shanghai vs. Nanjing Putian Telecommunications | Shanghai vs. Orinko Advanced Plastics | Shanghai vs. King Strong New Material | Shanghai vs. Guangxi Wuzhou Communications |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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