Correlation Between China Construction and Harbin Hatou
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By analyzing existing cross correlation between China Construction Bank and Harbin Hatou Investment, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Harbin Hatou.
Diversification Opportunities for China Construction and Harbin Hatou
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Harbin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank 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 China Construction 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 Construction Bank 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 China Construction i.e., China Construction and Harbin Hatou go up and down completely randomly.
Pair Corralation between China Construction and Harbin Hatou
Assuming the 90 days trading horizon China Construction Bank is expected to under-perform the Harbin Hatou. But the stock apears to be less risky and, when comparing its historical volatility, China Construction Bank is 3.25 times less risky than Harbin Hatou. The stock trades about -0.08 of its potential returns per unit of risk. The Harbin Hatou Investment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 609.00 in Harbin Hatou Investment on September 13, 2024 and sell it today you would earn a total of 125.00 from holding Harbin Hatou Investment or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Harbin Hatou Investment
Performance |
| Timeline |
| China Construction Bank |
| Harbin Hatou Investment |
China Construction and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Harbin Hatou
The main advantage of trading using opposite China Construction and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Eastroc Beverage Group | China Construction vs. Youyou Foods Co | China Construction vs. HaiXin Foods Co | China Construction vs. Shanghai Metersbonwe FashionAccessories |
| Harbin Hatou vs. Industrial and Commercial | Harbin Hatou vs. Agricultural Bank of | Harbin Hatou vs. China Construction Bank | Harbin Hatou vs. Bank of China |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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