Correlation Between Dongxing Sec and Harbin Hatou
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By analyzing existing cross correlation between Dongxing Sec Co and Harbin Hatou Investment, you can compare the effects of market volatilities on Dongxing Sec and Harbin Hatou 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 Dongxing Sec with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Harbin Hatou.
Diversification Opportunities for Dongxing Sec and Harbin Hatou
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and Harbin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Harbin Hatou go up and down completely randomly.
Pair Corralation between Dongxing Sec and Harbin Hatou
Assuming the 90 days trading horizon Dongxing Sec is expected to generate 1.26 times less return on investment than Harbin Hatou. But when comparing it to its historical volatility, Dongxing Sec Co is 1.27 times less risky than Harbin Hatou. It trades about 0.03 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Harbin Hatou Investment on November 2, 2024 and sell it today you would earn a total of 128.00 from holding Harbin Hatou Investment or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Harbin Hatou Investment
Performance |
| Timeline |
| Dongxing Sec |
| Harbin Hatou Investment |
Dongxing Sec and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Harbin Hatou
The main advantage of trading using opposite Dongxing Sec and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Harbin Hatou 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 Hatou will offset losses from the drop in Harbin Hatou's long position.| Dongxing Sec vs. Nanya New Material | Dongxing Sec vs. Jilin OLED Material | Dongxing Sec vs. Ningbo Ligong Online | Dongxing Sec vs. Anhui Gujing Distillery |
| Harbin Hatou vs. Dhc Software Co | Harbin Hatou vs. Glodon Software Co | Harbin Hatou vs. Lander Sports Development | Harbin Hatou vs. Linkage Software 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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