Correlation Between Sinosteel Luonai and Harbin Air
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By analyzing existing cross correlation between Sinosteel Luonai Materials and Harbin Air Conditioning, you can compare the effects of market volatilities on Sinosteel Luonai 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 Sinosteel Luonai with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and Harbin Air.
Diversification Opportunities for Sinosteel Luonai and Harbin Air
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinosteel and Harbin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials 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 Sinosteel Luonai 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 Sinosteel Luonai Materials 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 Sinosteel Luonai i.e., Sinosteel Luonai and Harbin Air go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and Harbin Air
Assuming the 90 days trading horizon Sinosteel Luonai Materials is expected to under-perform the Harbin Air. But the stock apears to be less risky and, when comparing its historical volatility, Sinosteel Luonai Materials is 2.89 times less risky than Harbin Air. The stock trades about -0.41 of its potential returns per unit of risk. The Harbin Air Conditioning is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 542.00 in Harbin Air Conditioning on October 17, 2024 and sell it today you would earn a total of 47.00 from holding Harbin Air Conditioning or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. Harbin Air Conditioning
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| Harbin Air Conditioning |
Sinosteel Luonai and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and Harbin Air
The main advantage of trading using opposite Sinosteel Luonai and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai 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.| Sinosteel Luonai vs. China Minmetals Rare | Sinosteel Luonai vs. Shenyang Huitian Thermal | Sinosteel Luonai vs. Pengxin International Mining | Sinosteel Luonai vs. Rising Nonferrous Metals |
| Harbin Air vs. Guangdong Shenglu Telecommunication | Harbin Air vs. Haima Automobile Group | Harbin Air vs. Anhui Deli Household | Harbin Air vs. China Mobile Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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