Correlation Between Huatian Hotel and King Strong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huatian Hotel Group and King Strong New Material, you can compare the effects of market volatilities on Huatian Hotel and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and King Strong.
Diversification Opportunities for Huatian Hotel and King Strong
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huatian and King is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and King Strong go up and down completely randomly.
Pair Corralation between Huatian Hotel and King Strong
Assuming the 90 days trading horizon Huatian Hotel Group is expected to under-perform the King Strong. In addition to that, Huatian Hotel is 1.12 times more volatile than King Strong New Material. It trades about -0.32 of its total potential returns per unit of risk. King Strong New Material is currently generating about -0.32 per unit of volatility. If you would invest 2,413 in King Strong New Material on October 12, 2024 and sell it today you would lose (454.00) from holding King Strong New Material or give up 18.81% 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. King Strong New Material
Performance |
| Timeline |
| Huatian Hotel Group |
| King Strong New |
Huatian Hotel and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and King Strong
The main advantage of trading using opposite Huatian Hotel and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.| Huatian Hotel vs. China Mobile Limited | Huatian Hotel vs. Dongfeng Automobile Co | Huatian Hotel vs. Rising Nonferrous Metals | Huatian Hotel vs. Sunwave Communications Co |
| King Strong vs. Shenzhen Silver Basis | King Strong vs. BTG Hotels Group | King Strong vs. Huatian Hotel Group | King Strong vs. Uroica Mining Safety |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |