Correlation Between Harbin Hatou and Jinhui Liquor
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By analyzing existing cross correlation between Harbin Hatou Investment and Jinhui Liquor Co, you can compare the effects of market volatilities on Harbin Hatou and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Jinhui Liquor.
Diversification Opportunities for Harbin Hatou and Jinhui Liquor
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Jinhui is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Harbin Hatou and Jinhui Liquor
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Jinhui Liquor. In addition to that, Harbin Hatou is 2.41 times more volatile than Jinhui Liquor Co. It trades about -0.35 of its total potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.64 per unit of volatility. If you would invest 2,087 in Jinhui Liquor Co on October 14, 2024 and sell it today you would lose (309.00) from holding Jinhui Liquor Co or give up 14.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Jinhui Liquor Co
Performance |
| Timeline |
| Harbin Hatou Investment |
| Jinhui Liquor |
Harbin Hatou and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Jinhui Liquor
The main advantage of trading using opposite Harbin Hatou and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor'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 |
| Jinhui Liquor vs. Vanfund Urban Investment | Jinhui Liquor vs. Metro Investment Development | Jinhui Liquor vs. Zhejiang Construction Investment | Jinhui Liquor vs. Xiandai Investment Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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