Correlation Between North Huajin and Hua Xia
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By analyzing existing cross correlation between North Huajin Chemical and Hua Xia Bank, you can compare the effects of market volatilities on North Huajin and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Hua Xia.
Diversification Opportunities for North Huajin and Hua Xia
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between North and Hua is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of North Huajin i.e., North Huajin and Hua Xia go up and down completely randomly.
Pair Corralation between North Huajin and Hua Xia
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Hua Xia. In addition to that, North Huajin is 1.89 times more volatile than Hua Xia Bank. It trades about 0.0 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.09 per unit of volatility. If you would invest 559.00 in Hua Xia Bank on September 14, 2024 and sell it today you would earn a total of 217.00 from holding Hua Xia Bank or generate 38.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Hua Xia Bank
Performance |
| Timeline |
| North Huajin Chemical |
| Hua Xia Bank |
North Huajin and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Hua Xia
The main advantage of trading using opposite North Huajin and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia'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 |
| Hua Xia vs. Dymatic Chemicals | Hua Xia vs. Bomesc Offshore Engineering | Hua Xia vs. North Huajin Chemical | Hua Xia vs. Changjiang Publishing Media |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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