Correlation Between Ye Chiu and Harbin Hatou
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By analyzing existing cross correlation between Ye Chiu Metal and Harbin Hatou Investment, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Harbin Hatou.
Diversification Opportunities for Ye Chiu and Harbin Hatou
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Harbin is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Harbin Hatou go up and down completely randomly.
Pair Corralation between Ye Chiu and Harbin Hatou
Assuming the 90 days trading horizon Ye Chiu is expected to generate 2.11 times less return on investment than Harbin Hatou. But when comparing it to its historical volatility, Ye Chiu Metal is 1.15 times less risky than Harbin Hatou. It trades about 0.06 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 494.00 in Harbin Hatou Investment on September 3, 2024 and sell it today you would earn a total of 208.00 from holding Harbin Hatou Investment or generate 42.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Harbin Hatou Investment
Performance |
| Timeline |
| Ye Chiu Metal |
| Harbin Hatou Investment |
Ye Chiu and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Harbin Hatou
The main advantage of trading using opposite Ye Chiu and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.The idea behind Ye Chiu Metal and Harbin Hatou Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Harbin Hatou vs. Linewell Software Co | Harbin Hatou vs. Maxvision Technology Corp | Harbin Hatou vs. Sportsoul Co Ltd | Harbin Hatou vs. Hubei Forbon Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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