Correlation Between Harbin Air and Shanghai Jinfeng
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By analyzing existing cross correlation between Harbin Air Conditioning and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Harbin Air and Shanghai Jinfeng 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 Harbin Air with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Air and Shanghai Jinfeng.
Diversification Opportunities for Harbin Air and Shanghai Jinfeng
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbin and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Air Conditioning and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and Harbin Air 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 Harbin Air Conditioning are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Harbin Air i.e., Harbin Air and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Harbin Air and Shanghai Jinfeng
Assuming the 90 days trading horizon Harbin Air is expected to generate 1.3 times less return on investment than Shanghai Jinfeng. But when comparing it to its historical volatility, Harbin Air Conditioning is 1.21 times less risky than Shanghai Jinfeng. It trades about 0.08 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 499.00 in Shanghai Jinfeng Wine on September 26, 2024 and sell it today you would earn a total of 83.00 from holding Shanghai Jinfeng Wine or generate 16.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Harbin Air Conditioning vs. Shanghai Jinfeng Wine
Performance |
Timeline |
Harbin Air Conditioning |
Shanghai Jinfeng Wine |
Harbin Air and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harbin Air and Shanghai Jinfeng
The main advantage of trading using opposite Harbin Air and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Air position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.Harbin Air vs. Kweichow Moutai Co | Harbin Air vs. Contemporary Amperex Technology | Harbin Air vs. G bits Network Technology | Harbin Air vs. BYD Co Ltd |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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