Correlation Between Huatian Hotel and Qiming Information
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By analyzing existing cross correlation between Huatian Hotel Group and Qiming Information Technology, you can compare the effects of market volatilities on Huatian Hotel and Qiming Information 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Qiming Information.
Diversification Opportunities for Huatian Hotel and Qiming Information
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huatian and Qiming is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Qiming Information go up and down completely randomly.
Pair Corralation between Huatian Hotel and Qiming Information
Assuming the 90 days trading horizon Huatian Hotel Group is expected to under-perform the Qiming Information. But the stock apears to be less risky and, when comparing its historical volatility, Huatian Hotel Group is 1.22 times less risky than Qiming Information. The stock trades about -0.41 of its potential returns per unit of risk. The Qiming Information Technology is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 2,250 in Qiming Information Technology on October 14, 2024 and sell it today you would lose (404.00) from holding Qiming Information Technology or give up 17.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huatian Hotel Group vs. Qiming Information Technology
Performance |
| Timeline |
| Huatian Hotel Group |
| Qiming Information |
Huatian Hotel and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Qiming Information
The main advantage of trading using opposite Huatian Hotel and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.| Huatian Hotel vs. UE Furniture Co | Huatian Hotel vs. Sharetronic Data Technology | Huatian Hotel vs. Zhejiang Kingland Pipeline | Huatian Hotel vs. East Money Information |
| Qiming Information vs. Heren Health Co | Qiming Information vs. Zhejiang Kingland Pipeline | Qiming Information vs. Shandong Longquan Pipeline | Qiming Information vs. Huatian Hotel Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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