Correlation Between North Huajin and Huaxia Eye
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By analyzing existing cross correlation between North Huajin Chemical and Huaxia Eye Hospital, you can compare the effects of market volatilities on North Huajin and Huaxia Eye 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 North Huajin with a short position of Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Huaxia Eye.
Diversification Opportunities for North Huajin and Huaxia Eye
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between North and Huaxia is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital and North Huajin 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 North Huajin Chemical are associated (or correlated) with Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of North Huajin i.e., North Huajin and Huaxia Eye go up and down completely randomly.
Pair Corralation between North Huajin and Huaxia Eye
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Huaxia Eye. But the stock apears to be less risky and, when comparing its historical volatility, North Huajin Chemical is 1.07 times less risky than Huaxia Eye. The stock trades about -0.13 of its potential returns per unit of risk. The Huaxia Eye Hospital is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,133 in Huaxia Eye Hospital on September 28, 2024 and sell it today you would lose (115.00) from holding Huaxia Eye Hospital or give up 5.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Huaxia Eye Hospital
Performance |
| Timeline |
| North Huajin Chemical |
| Huaxia Eye Hospital |
North Huajin and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Huaxia Eye
The main advantage of trading using opposite North Huajin and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
| Huaxia Eye vs. Liuzhou Chemical Industry | Huaxia Eye vs. North Huajin Chemical | Huaxia Eye vs. Liaoning Dingjide Petrochemical | Huaxia Eye vs. Guangzhou Jointas Chemical |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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