Correlation Between Harbin Hatou and Kunshan Guoli
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By analyzing existing cross correlation between Harbin Hatou Investment and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Harbin Hatou and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Kunshan Guoli.
Diversification Opportunities for Harbin Hatou and Kunshan Guoli
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Kunshan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Harbin Hatou and Kunshan Guoli
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.1 times more return on investment than Kunshan Guoli. However, Harbin Hatou is 1.1 times more volatile than Kunshan Guoli Electronic. It trades about 0.04 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.09 per unit of risk. If you would invest 723.00 in Harbin Hatou Investment on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Harbin Hatou Investment or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Harbin Hatou Investment |
| Kunshan Guoli Electronic |
Harbin Hatou and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Kunshan Guoli
The main advantage of trading using opposite Harbin Hatou and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli'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 |
| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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