Correlation Between Kontour (Xian) and Harbin Hatou
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By analyzing existing cross correlation between Kontour Medical Technology and Harbin Hatou Investment, you can compare the effects of market volatilities on Kontour (Xian) 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 Kontour (Xian) with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour (Xian) and Harbin Hatou.
Diversification Opportunities for Kontour (Xian) and Harbin Hatou
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kontour and Harbin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology 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 Kontour (Xian) 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 Kontour Medical Technology 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 Kontour (Xian) i.e., Kontour (Xian) and Harbin Hatou go up and down completely randomly.
Pair Corralation between Kontour (Xian) and Harbin Hatou
Assuming the 90 days trading horizon Kontour Medical Technology is expected to generate 0.88 times more return on investment than Harbin Hatou. However, Kontour Medical Technology is 1.13 times less risky than Harbin Hatou. It trades about 0.2 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.06 per unit of risk. If you would invest 2,809 in Kontour Medical Technology on November 7, 2024 and sell it today you would earn a total of 169.00 from holding Kontour Medical Technology or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontour Medical Technology vs. Harbin Hatou Investment
Performance |
| Timeline |
| Kontour Medical Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Harbin Hatou Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kontour (Xian) and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour (Xian) and Harbin Hatou
The main advantage of trading using opposite Kontour (Xian) and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour (Xian) 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.The idea behind Kontour Medical Technology and Harbin Hatou Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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