Correlation Between Huatian Hotel and Ningbo Ligong
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By analyzing existing cross correlation between Huatian Hotel Group and Ningbo Ligong Online, you can compare the effects of market volatilities on Huatian Hotel and Ningbo Ligong 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 Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Ningbo Ligong.
Diversification Opportunities for Huatian Hotel and Ningbo Ligong
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huatian and Ningbo is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Huatian Hotel and Ningbo Ligong
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 1.05 times more return on investment than Ningbo Ligong. However, Huatian Hotel is 1.05 times more volatile than Ningbo Ligong Online. It trades about 0.1 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.02 per unit of risk. If you would invest 286.00 in Huatian Hotel Group on August 28, 2024 and sell it today you would earn a total of 46.00 from holding Huatian Hotel Group or generate 16.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huatian Hotel Group vs. Ningbo Ligong Online
Performance |
| Timeline |
| Huatian Hotel Group |
| Ningbo Ligong Online |
Huatian Hotel and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Ningbo Ligong
The main advantage of trading using opposite Huatian Hotel and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Huatian Hotel vs. Guangdong Shenglu Telecommunication | Huatian Hotel vs. Zhongtong Guomai Communication | Huatian Hotel vs. Telling Telecommunication Holding | Huatian Hotel vs. Jilin Jlu Communication |
| Ningbo Ligong vs. Keli Sensing Technology | Ningbo Ligong vs. Heilongjiang Transport Development | Ningbo Ligong vs. Jinhe Biotechnology Co | Ningbo Ligong vs. Kangping Technology Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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