Correlation Between Western Mining and Harbin Air
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By analyzing existing cross correlation between Western Mining Co and Harbin Air Conditioning, you can compare the effects of market volatilities on Western Mining 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 Western Mining with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Harbin Air.
Diversification Opportunities for Western Mining and Harbin Air
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Western and Harbin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining Co 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 Western Mining 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 Western Mining Co 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 Western Mining i.e., Western Mining and Harbin Air go up and down completely randomly.
Pair Corralation between Western Mining and Harbin Air
Assuming the 90 days trading horizon Western Mining Co is expected to generate 0.22 times more return on investment than Harbin Air. However, Western Mining Co is 4.46 times less risky than Harbin Air. It trades about 0.3 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.06 per unit of risk. If you would invest 1,632 in Western Mining Co on November 4, 2024 and sell it today you would earn a total of 111.00 from holding Western Mining Co or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Mining Co vs. Harbin Air Conditioning
Performance |
| Timeline |
| Western Mining |
| Harbin Air Conditioning |
Western Mining and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Mining and Harbin Air
The main advantage of trading using opposite Western Mining and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining 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.| Western Mining vs. Pengxin International Mining | Western Mining vs. Xiandai Investment Co | Western Mining vs. Fujian Oriental Silver | Western Mining vs. Cultural Investment Holdings |
| Harbin Air vs. Anhui Tongguan Copper | Harbin Air vs. Shanghai Yanpu Metal | Harbin Air vs. JCHX Mining Management | Harbin Air vs. North Copper Shanxi |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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