Correlation Between Huatian Hotel and Niutech Environment
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By analyzing existing cross correlation between Huatian Hotel Group and Niutech Environment Technology, you can compare the effects of market volatilities on Huatian Hotel and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Niutech Environment.
Diversification Opportunities for Huatian Hotel and Niutech Environment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huatian and Niutech is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Niutech Environment go up and down completely randomly.
Pair Corralation between Huatian Hotel and Niutech Environment
Assuming the 90 days trading horizon Huatian Hotel Group is expected to under-perform the Niutech Environment. In addition to that, Huatian Hotel is 1.17 times more volatile than Niutech Environment Technology. It trades about -0.22 of its total potential returns per unit of risk. Niutech Environment Technology is currently generating about -0.19 per unit of volatility. If you would invest 1,432 in Niutech Environment Technology on October 18, 2024 and sell it today you would lose (156.00) from holding Niutech Environment Technology or give up 10.89% 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. Niutech Environment Technology
Performance |
| Timeline |
| Huatian Hotel Group |
| Niutech Environment |
Huatian Hotel and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huatian Hotel and Niutech Environment
The main advantage of trading using opposite Huatian Hotel and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment'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 |
| Niutech Environment vs. Porton Fine Chemicals | Niutech Environment vs. Beijing Jiaman Dress | Niutech Environment vs. Shandong Polymer Biochemicals | Niutech Environment vs. FSPG Hi Tech 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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