Correlation Between China Railway and Harbin Air
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Construction and Harbin Air Conditioning, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Harbin Air.
Diversification Opportunities for China Railway and Harbin Air
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Harbin is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction 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 China Railway 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 China Railway Construction 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 China Railway i.e., China Railway and Harbin Air go up and down completely randomly.
Pair Corralation between China Railway and Harbin Air
Assuming the 90 days trading horizon China Railway Construction is expected to generate 0.74 times more return on investment than Harbin Air. However, China Railway Construction is 1.36 times less risky than Harbin Air. It trades about 0.01 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.01 per unit of risk. If you would invest 826.00 in China Railway Construction on November 29, 2024 and sell it today you would earn a total of 19.00 from holding China Railway Construction or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Harbin Air Conditioning
Performance |
| Timeline |
| China Railway Constr |
| Harbin Air Conditioning |
China Railway and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Harbin Air
The main advantage of trading using opposite China Railway and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Caihong Display Devices | China Railway vs. Changjiang Publishing Media | China Railway vs. State Grid InformationCommunication | China Railway vs. Wintao Communications Co |
| Harbin Air vs. Time Publishing and | Harbin Air vs. Southern PublishingMedia Co | Harbin Air vs. Changjiang Publishing Media | Harbin Air vs. Heilongjiang Publishing Media |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |