Correlation Between Harbin Hatou and Leaguer Shenzhen
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By analyzing existing cross correlation between Harbin Hatou Investment and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Harbin Hatou and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Leaguer Shenzhen.
Diversification Opportunities for Harbin Hatou and Leaguer Shenzhen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Leaguer is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Harbin Hatou and Leaguer Shenzhen
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.42 times more return on investment than Leaguer Shenzhen. However, Harbin Hatou is 1.42 times more volatile than Leaguer Shenzhen MicroElectronics. It trades about 0.04 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about -0.03 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Harbin Hatou Investment |
| Leaguer Shenzhen Mic |
Harbin Hatou and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Leaguer Shenzhen
The main advantage of trading using opposite Harbin Hatou and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen'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 |
| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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