Correlation Between Harbin Hatou and Guangdong Marubi
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By analyzing existing cross correlation between Harbin Hatou Investment and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Harbin Hatou and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Guangdong Marubi.
Diversification Opportunities for Harbin Hatou and Guangdong Marubi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Guangdong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Harbin Hatou and Guangdong Marubi
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.21 times more return on investment than Guangdong Marubi. However, Harbin Hatou is 1.21 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.13 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.11 per unit of risk. If you would invest 714.00 in Harbin Hatou Investment on September 14, 2024 and sell it today you would earn a total of 65.00 from holding Harbin Hatou Investment or generate 9.1% 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. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Harbin Hatou Investment |
| Guangdong Marubi Bio |
Harbin Hatou and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Guangdong Marubi
The main advantage of trading using opposite Harbin Hatou and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi'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 |
| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. Bank of China | Guangdong Marubi vs. PetroChina Co Ltd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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