Correlation Between Tongling Nonferrous and Harbin Hatou
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By analyzing existing cross correlation between Tongling Nonferrous Metals and Harbin Hatou Investment, you can compare the effects of market volatilities on Tongling Nonferrous 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 Tongling Nonferrous with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Harbin Hatou.
Diversification Opportunities for Tongling Nonferrous and Harbin Hatou
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongling and Harbin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals 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 Tongling Nonferrous 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 Tongling Nonferrous Metals 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 Tongling Nonferrous i.e., Tongling Nonferrous and Harbin Hatou go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Harbin Hatou
Assuming the 90 days trading horizon Tongling Nonferrous is expected to generate 2.84 times less return on investment than Harbin Hatou. But when comparing it to its historical volatility, Tongling Nonferrous Metals is 1.33 times less risky than Harbin Hatou. It trades about 0.02 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 478.00 in Harbin Hatou Investment on September 26, 2024 and sell it today you would earn a total of 277.00 from holding Harbin Hatou Investment or generate 57.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tongling Nonferrous Metals vs. Harbin Hatou Investment
Performance |
Timeline |
Tongling Nonferrous |
Harbin Hatou Investment |
Tongling Nonferrous and Harbin Hatou Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tongling Nonferrous and Harbin Hatou
The main advantage of trading using opposite Tongling Nonferrous and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous 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.Tongling Nonferrous vs. Hubeiyichang Transportation Group | Tongling Nonferrous vs. Dazhong Transportation Group | Tongling Nonferrous vs. Gansu Yasheng Industrial | Tongling Nonferrous vs. Sportsoul Co Ltd |
Harbin Hatou vs. Guilin Seamild Foods | Harbin Hatou vs. Eastroc Beverage Group | Harbin Hatou vs. Tianshan Aluminum Group | Harbin Hatou vs. Tongling Nonferrous Metals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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