Correlation Between Huatian Hotel and Marssenger Kitchenware
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By analyzing existing cross correlation between Huatian Hotel Group and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Huatian Hotel and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Marssenger Kitchenware.
Diversification Opportunities for Huatian Hotel and Marssenger Kitchenware
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huatian and Marssenger is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Huatian Hotel and Marssenger Kitchenware
Assuming the 90 days trading horizon Huatian Hotel Group is expected to under-perform the Marssenger Kitchenware. In addition to that, Huatian Hotel is 1.1 times more volatile than Marssenger Kitchenware Co. It trades about -0.32 of its total potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.34 per unit of volatility. If you would invest 1,647 in Marssenger Kitchenware Co on October 12, 2024 and sell it today you would lose (333.00) from holding Marssenger Kitchenware Co or give up 20.22% 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. Marssenger Kitchenware Co
Performance |
| Timeline |
| Huatian Hotel Group |
| Marssenger Kitchenware |
Huatian Hotel and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Marssenger Kitchenware
The main advantage of trading using opposite Huatian Hotel and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware'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 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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