Correlation Between Huatian Hotel and Hubei Geoway
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By analyzing existing cross correlation between Huatian Hotel Group and Hubei Geoway Investment, you can compare the effects of market volatilities on Huatian Hotel and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Hubei Geoway.
Diversification Opportunities for Huatian Hotel and Hubei Geoway
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huatian and Hubei is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Hubei Geoway go up and down completely randomly.
Pair Corralation between Huatian Hotel and Hubei Geoway
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 0.85 times more return on investment than Hubei Geoway. However, Huatian Hotel Group is 1.18 times less risky than Hubei Geoway. It trades about -0.22 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about -0.41 per unit of risk. If you would invest 369.00 in Huatian Hotel Group on October 18, 2024 and sell it today you would lose (53.00) from holding Huatian Hotel Group or give up 14.36% 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. Hubei Geoway Investment
Performance |
Timeline |
Huatian Hotel Group |
Hubei Geoway Investment |
Huatian Hotel and Hubei Geoway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huatian Hotel and Hubei Geoway
The main advantage of trading using opposite Huatian Hotel and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.Huatian Hotel vs. Gem Year Industrial Co | Huatian Hotel vs. Xinjiang Baodi Mining | Huatian Hotel vs. Jonjee Hi tech Industrial | Huatian Hotel vs. Ningbo Fujia Industrial |
Hubei Geoway vs. Lootom Telcovideo Network | Hubei Geoway vs. China Asset Management | Hubei Geoway vs. Postal Savings Bank | Hubei Geoway vs. Anhui Jianghuai Automobile |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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