Correlation Between Huatian Hotel and Guizhou BroadcastingTV
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By analyzing existing cross correlation between Huatian Hotel Group and Guizhou BroadcastingTV Info, you can compare the effects of market volatilities on Huatian Hotel and Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Guizhou BroadcastingTV.
Diversification Opportunities for Huatian Hotel and Guizhou BroadcastingTV
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huatian and Guizhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Guizhou BroadcastingTV Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou BroadcastingTV has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Guizhou BroadcastingTV go up and down completely randomly.
Pair Corralation between Huatian Hotel and Guizhou BroadcastingTV
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 1.1 times more return on investment than Guizhou BroadcastingTV. However, Huatian Hotel is 1.1 times more volatile than Guizhou BroadcastingTV Info. It trades about -0.1 of its potential returns per unit of risk. Guizhou BroadcastingTV Info is currently generating about -0.13 per unit of risk. If you would invest 320.00 in Huatian Hotel Group on October 29, 2024 and sell it today you would lose (19.00) from holding Huatian Hotel Group or give up 5.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huatian Hotel Group vs. Guizhou BroadcastingTV Info
Performance |
| Timeline |
| Huatian Hotel Group |
| Guizhou BroadcastingTV |
Huatian Hotel and Guizhou BroadcastingTV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Guizhou BroadcastingTV
The main advantage of trading using opposite Huatian Hotel and Guizhou BroadcastingTV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Guizhou BroadcastingTV 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 Guizhou BroadcastingTV will offset losses from the drop in Guizhou BroadcastingTV's long position.| Huatian Hotel vs. Guangzhou Seagull Kitchen | Huatian Hotel vs. Yindu Kitchen Equipment | Huatian Hotel vs. Jiajia Food Group | Huatian Hotel vs. JuneYao Dairy 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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