Correlation Between Jiangsu Xinri and Harbin Air
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Harbin Air Conditioning, you can compare the effects of market volatilities on Jiangsu Xinri 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 Jiangsu Xinri with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Harbin Air.
Diversification Opportunities for Jiangsu Xinri and Harbin Air
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Harbin is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle 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 Jiangsu Xinri 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 Jiangsu Xinri E Vehicle 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 Jiangsu Xinri i.e., Jiangsu Xinri and Harbin Air go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Harbin Air
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to under-perform the Harbin Air. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Xinri E Vehicle is 1.07 times less risky than Harbin Air. The stock trades about -0.04 of its potential returns per unit of risk. The Harbin Air Conditioning is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 552.00 in Harbin Air Conditioning on October 16, 2024 and sell it today you would lose (17.00) from holding Harbin Air Conditioning or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Harbin Air Conditioning
Performance |
| Timeline |
| Jiangsu Xinri E |
| Harbin Air Conditioning |
Jiangsu Xinri and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and Harbin Air
The main advantage of trading using opposite Jiangsu Xinri and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri 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.| Jiangsu Xinri vs. Kingclean Electric Co | Jiangsu Xinri vs. Orinko Advanced Plastics | Jiangsu Xinri vs. Western Metal Materials | Jiangsu Xinri vs. Keda Clean Energy |
| Harbin Air vs. Jiangsu Xinri E Vehicle | Harbin Air vs. Semiconductor Manufacturing Electronics | Harbin Air vs. Sihui Fuji Electronics | Harbin Air vs. Citic Guoan Wine |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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