Correlation Between Huatian Hotel and Shenyang Huitian
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By analyzing existing cross correlation between Huatian Hotel Group and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Huatian Hotel and Shenyang Huitian 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 Huatian Hotel with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Shenyang Huitian.
Diversification Opportunities for Huatian Hotel and Shenyang Huitian
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huatian and Shenyang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Huatian Hotel 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 Huatian Hotel Group are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Huatian Hotel and Shenyang Huitian
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 0.77 times more return on investment than Shenyang Huitian. However, Huatian Hotel Group is 1.29 times less risky than Shenyang Huitian. It trades about 0.16 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about -0.02 per unit of risk. If you would invest 307.00 in Huatian Hotel Group on December 31, 2024 and sell it today you would earn a total of 14.00 from holding Huatian Hotel Group or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huatian Hotel Group vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Huatian Hotel Group |
| Shenyang Huitian Thermal |
Huatian Hotel and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Shenyang Huitian
The main advantage of trading using opposite Huatian Hotel and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Huatian Hotel vs. China Everbright Bank | Huatian Hotel vs. SI TECH Information Technology | Huatian Hotel vs. Beijing Watertek Information | Huatian Hotel vs. Shanghai Pudong Development |
| Shenyang Huitian vs. Huatian Hotel Group | Shenyang Huitian vs. Dalian Zeus Entertainment | Shenyang Huitian vs. Guangzhou Dongfang Hotel | Shenyang Huitian vs. GUOMAI Culture 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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