Correlation Between Harbin Hatou and Suzhou Xingye
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By analyzing existing cross correlation between Harbin Hatou Investment and Suzhou Xingye Material, you can compare the effects of market volatilities on Harbin Hatou and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Suzhou Xingye.
Diversification Opportunities for Harbin Hatou and Suzhou Xingye
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Suzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Harbin Hatou and Suzhou Xingye
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 0.76 times more return on investment than Suzhou Xingye. However, Harbin Hatou Investment is 1.32 times less risky than Suzhou Xingye. It trades about 0.03 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about -0.01 per unit of risk. If you would invest 609.00 in Harbin Hatou Investment on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Harbin Hatou Investment or generate 10.34% 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. Suzhou Xingye Material
Performance |
| Timeline |
| Harbin Hatou Investment |
| Suzhou Xingye Material |
Harbin Hatou and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Suzhou Xingye
The main advantage of trading using opposite Harbin Hatou and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye'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 |
| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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