Correlation Between Bank of China and Harbin Air
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By analyzing existing cross correlation between Bank of China and Harbin Air Conditioning, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Harbin Air.
Diversification Opportunities for Bank of China and Harbin Air
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Harbin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Harbin Air go up and down completely randomly.
Pair Corralation between Bank of China and Harbin Air
Assuming the 90 days trading horizon Bank of China is expected to generate 0.42 times more return on investment than Harbin Air. However, Bank of China is 2.39 times less risky than Harbin Air. It trades about 0.2 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.08 per unit of risk. If you would invest 483.00 in Bank of China on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Bank of China or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Harbin Air Conditioning
Performance |
| Timeline |
| Bank of China |
| Harbin Air Conditioning |
Bank of China and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Harbin Air
The main advantage of trading using opposite Bank of China and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Tianjin Hi Tech Development | Bank of China vs. Dazhong Transportation Group | Bank of China vs. Hubeiyichang Transportation Group | Bank of China vs. Guangdong Shenglu Telecommunication |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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