Correlation Between Huatian Hotel and BYD Co
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By analyzing existing cross correlation between Huatian Hotel Group and BYD Co Ltd, you can compare the effects of market volatilities on Huatian Hotel and BYD Co 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 BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and BYD Co.
Diversification Opportunities for Huatian Hotel and BYD Co
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huatian and BYD is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co 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 BYD Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Co has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and BYD Co go up and down completely randomly.
Pair Corralation between Huatian Hotel and BYD Co
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 1.14 times more return on investment than BYD Co. However, Huatian Hotel is 1.14 times more volatile than BYD Co Ltd. It trades about 0.1 of its potential returns per unit of risk. BYD Co Ltd is currently generating about 0.05 per unit of risk. If you would invest 295.00 in Huatian Hotel Group on November 6, 2024 and sell it today you would earn a total of 8.00 from holding Huatian Hotel Group or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huatian Hotel Group vs. BYD Co Ltd
Performance |
| Timeline |
| Huatian Hotel Group |
| BYD Co |
Huatian Hotel and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and BYD Co
The main advantage of trading using opposite Huatian Hotel and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, BYD Co 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 BYD Co will offset losses from the drop in BYD Co's long position.| Huatian Hotel vs. Shenzhen Silver Basis | Huatian Hotel vs. Hangzhou Pinming Software | Huatian Hotel vs. Beijing Baolande Software | Huatian Hotel vs. GuoChuang Software Co |
| BYD Co vs. Hongrun Construction Group | BYD Co vs. Changchun Engley Automobile | BYD Co vs. Anhui Jianghuai Automobile | BYD Co vs. Shenzhen Zhongzhuang Construction |
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 CEOs Directory module to screen CEOs from public companies around the world.
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