Correlation Between Harbin Hatou and Sinosteel Luonai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Harbin Hatou Investment and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Harbin Hatou and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Sinosteel Luonai.
Diversification Opportunities for Harbin Hatou and Sinosteel Luonai
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Sinosteel is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Harbin Hatou and Sinosteel Luonai
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Sinosteel Luonai. In addition to that, Harbin Hatou is 1.91 times more volatile than Sinosteel Luonai Materials. It trades about -0.27 of its total potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about -0.29 per unit of volatility. If you would invest 405.00 in Sinosteel Luonai Materials on October 28, 2024 and sell it today you would lose (35.00) from holding Sinosteel Luonai Materials or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Sinosteel Luonai Materials
Performance |
| Timeline |
| Harbin Hatou Investment |
| Sinosteel Luonai Mat |
Harbin Hatou and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Sinosteel Luonai
The main advantage of trading using opposite Harbin Hatou and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.| Harbin Hatou vs. Agricultural Bank of | Harbin Hatou vs. Industrial and Commercial | Harbin Hatou vs. Bank of China | Harbin Hatou vs. China Construction Bank |
| Sinosteel Luonai vs. Ningbo Ligong Online | Sinosteel Luonai vs. Soyea Technology Co | Sinosteel Luonai vs. Jiujiang Shanshui Technology | Sinosteel Luonai vs. Tianshui Huatian Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |