Correlation Between Hunan Investment and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Hunan Investment Group and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Hunan Investment and Beijing HuaYuanYiTong 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 Hunan Investment with a short position of Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Beijing HuaYuanYiTong.
Diversification Opportunities for Hunan Investment and Beijing HuaYuanYiTong
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Beijing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Hunan Investment i.e., Hunan Investment and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Hunan Investment and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.23 times more return on investment than Beijing HuaYuanYiTong. However, Hunan Investment is 1.23 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about -0.36 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about -0.54 per unit of risk. If you would invest 598.00 in Hunan Investment Group on October 11, 2024 and sell it today you would lose (100.00) from holding Hunan Investment Group or give up 16.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| Hunan Investment |
| Beijing HuaYuanYiTong |
Hunan Investment and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Beijing HuaYuanYiTong
The main advantage of trading using opposite Hunan Investment and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| Hunan Investment vs. Tianjin Hi Tech Development | Hunan Investment vs. Guangzhou Automobile Group | Hunan Investment vs. Fujian Newland Computer | Hunan Investment vs. ChengDu Hi Tech Development |
| Beijing HuaYuanYiTong vs. Zijin Mining Group | Beijing HuaYuanYiTong vs. Ningbo Fangzheng Automobile | Beijing HuaYuanYiTong vs. Western Mining Co | Beijing HuaYuanYiTong vs. Jinhui Mining 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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