Correlation Between Harbin Hatou and Marssenger Kitchenware
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By analyzing existing cross correlation between Harbin Hatou Investment and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Harbin Hatou and Marssenger Kitchenware 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 Hatou with a short position of Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Marssenger Kitchenware.
Diversification Opportunities for Harbin Hatou and Marssenger Kitchenware
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Marssenger is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware and Harbin Hatou 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 Hatou Investment are associated (or correlated) with Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Harbin Hatou and Marssenger Kitchenware
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 0.89 times more return on investment than Marssenger Kitchenware. However, Harbin Hatou Investment is 1.12 times less risky than Marssenger Kitchenware. It trades about 0.15 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.07 per unit of risk. If you would invest 550.00 in Harbin Hatou Investment on September 26, 2024 and sell it today you would earn a total of 205.00 from holding Harbin Hatou Investment or generate 37.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Harbin Hatou Investment vs. Marssenger Kitchenware Co
Performance |
Timeline |
Harbin Hatou Investment |
Marssenger Kitchenware |
Harbin Hatou and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harbin Hatou and Marssenger Kitchenware
The main advantage of trading using opposite Harbin Hatou and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.Harbin Hatou vs. Guilin Seamild Foods | Harbin Hatou vs. Eastroc Beverage Group | Harbin Hatou vs. Tianshan Aluminum Group | Harbin Hatou vs. Tongling Nonferrous Metals |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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