Correlation Between Harbin Hatou and Kunwu Jiuding
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By analyzing existing cross correlation between Harbin Hatou Investment and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Harbin Hatou and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Kunwu Jiuding.
Diversification Opportunities for Harbin Hatou and Kunwu Jiuding
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbin and Kunwu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Harbin Hatou and Kunwu Jiuding
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.61 times more return on investment than Kunwu Jiuding. However, Harbin Hatou is 1.61 times more volatile than Kunwu Jiuding Investment. It trades about 0.17 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.03 per unit of risk. If you would invest 648.00 in Harbin Hatou Investment on September 24, 2024 and sell it today you would earn a total of 76.00 from holding Harbin Hatou Investment or generate 11.73% 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. Kunwu Jiuding Investment
Performance |
Timeline |
Harbin Hatou Investment |
Kunwu Jiuding Investment |
Harbin Hatou and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harbin Hatou and Kunwu Jiuding
The main advantage of trading using opposite Harbin Hatou and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.Harbin Hatou vs. Kweichow Moutai Co | Harbin Hatou vs. Contemporary Amperex Technology | Harbin Hatou vs. G bits Network Technology | Harbin Hatou 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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