Correlation Between Xinjiang Baodi and Harbin Air
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Harbin Air Conditioning, you can compare the effects of market volatilities on Xinjiang Baodi and Harbin Air 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 Xinjiang Baodi with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Harbin Air.
Diversification Opportunities for Xinjiang Baodi and Harbin Air
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Harbin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning and Xinjiang Baodi 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 Xinjiang Baodi Mining are associated (or correlated) with Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Harbin Air go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Harbin Air
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.2 times more return on investment than Harbin Air. However, Xinjiang Baodi is 1.2 times more volatile than Harbin Air Conditioning. It trades about 0.13 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.16 per unit of risk. If you would invest 630.00 in Xinjiang Baodi Mining on September 3, 2024 and sell it today you would earn a total of 41.00 from holding Xinjiang Baodi Mining or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Harbin Air Conditioning
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Harbin Air Conditioning |
Xinjiang Baodi and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Harbin Air
The main advantage of trading using opposite Xinjiang Baodi and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical Co | Xinjiang Baodi vs. Hoshine Silicon Ind |
| Harbin Air vs. Cultural Investment Holdings | Harbin Air vs. Gome Telecom Equipment | Harbin Air vs. Bus Online Co | Harbin Air vs. Holitech Technology Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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