Correlation Between Industrial and Harbin Air
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Harbin Air Conditioning, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Harbin Air.
Diversification Opportunities for Industrial and Harbin Air
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Harbin is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Harbin Air go up and down completely randomly.
Pair Corralation between Industrial and Harbin Air
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.44 times more return on investment than Harbin Air. However, Industrial and Commercial is 2.3 times less risky than Harbin Air. It trades about 0.08 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 400.00 in Industrial and Commercial on August 31, 2024 and sell it today you would earn a total of 219.00 from holding Industrial and Commercial or generate 54.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Harbin Air Conditioning
Performance |
| Timeline |
| Industrial and Commercial |
| Harbin Air Conditioning |
Industrial and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Harbin Air
The main advantage of trading using opposite Industrial and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. China Publishing Media | Industrial vs. Xiandai Investment Co | Industrial vs. Lander Sports Development | Industrial vs. Zhejiang Construction Investment |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |