Correlation Between Huatian Hotel and Tengda Construction
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By analyzing existing cross correlation between Huatian Hotel Group and Tengda Construction Group, you can compare the effects of market volatilities on Huatian Hotel and Tengda Construction 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 Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Tengda Construction.
Diversification Opportunities for Huatian Hotel and Tengda Construction
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huatian and Tengda is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction 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 Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Tengda Construction go up and down completely randomly.
Pair Corralation between Huatian Hotel and Tengda Construction
Assuming the 90 days trading horizon Huatian Hotel Group is expected to under-perform the Tengda Construction. In addition to that, Huatian Hotel is 1.38 times more volatile than Tengda Construction Group. It trades about -0.02 of its total potential returns per unit of risk. Tengda Construction Group is currently generating about 0.0 per unit of volatility. If you would invest 229.00 in Tengda Construction Group on October 24, 2024 and sell it today you would lose (2.00) from holding Tengda Construction Group or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huatian Hotel Group vs. Tengda Construction Group
Performance |
| Timeline |
| Huatian Hotel Group |
| Tengda Construction |
Huatian Hotel and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Tengda Construction
The main advantage of trading using opposite Huatian Hotel and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Huatian Hotel vs. Goodwill E Health | Huatian Hotel vs. Sanbo Hospital Management | Huatian Hotel vs. CICC Fund Management | Huatian Hotel vs. Chengdu Spaceon Electronics |
| Tengda Construction vs. Jinling Hotel Corp | Tengda Construction vs. Huatian Hotel Group | Tengda Construction vs. Ingenic Semiconductor | Tengda Construction vs. Union Semiconductor 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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