Correlation Between Harbin Hatou and Dazhong Transportation
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By analyzing existing cross correlation between Harbin Hatou Investment and Dazhong Transportation Group, you can compare the effects of market volatilities on Harbin Hatou and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Dazhong Transportation.
Diversification Opportunities for Harbin Hatou and Dazhong Transportation
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harbin and Dazhong is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Harbin Hatou and Dazhong Transportation
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.45 times more return on investment than Dazhong Transportation. However, Harbin Hatou is 1.45 times more volatile than Dazhong Transportation Group. It trades about 0.01 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about -0.02 per unit of risk. If you would invest 609.00 in Harbin Hatou Investment on October 14, 2024 and sell it today you would lose (6.00) from holding Harbin Hatou Investment or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Dazhong Transportation Group
Performance |
| Timeline |
| Harbin Hatou Investment |
| Dazhong Transportation |
Harbin Hatou and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Dazhong Transportation
The main advantage of trading using opposite Harbin Hatou and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Harbin Hatou vs. Dongfeng Automobile Co | Harbin Hatou vs. Guotai Epoint Software | Harbin Hatou vs. Anhui Jianghuai Automobile | Harbin Hatou vs. Beijing Baolande Software |
| Dazhong Transportation vs. Youngy Health Co | Dazhong Transportation vs. PKU HealthCare Corp | Dazhong Transportation vs. Mingchen Health Co | Dazhong Transportation vs. Zhejiang Kingland Pipeline |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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