Correlation Between Vanfund Urban and Huatian Hotel
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By analyzing existing cross correlation between Vanfund Urban Investment and Huatian Hotel Group, you can compare the effects of market volatilities on Vanfund Urban and Huatian Hotel 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 Vanfund Urban with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Huatian Hotel.
Diversification Opportunities for Vanfund Urban and Huatian Hotel
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanfund and Huatian is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group and Vanfund Urban 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 Vanfund Urban Investment are associated (or correlated) with Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Huatian Hotel go up and down completely randomly.
Pair Corralation between Vanfund Urban and Huatian Hotel
Assuming the 90 days trading horizon Vanfund Urban is expected to generate 2.62 times less return on investment than Huatian Hotel. In addition to that, Vanfund Urban is 1.24 times more volatile than Huatian Hotel Group. It trades about 0.02 of its total potential returns per unit of risk. Huatian Hotel Group is currently generating about 0.07 per unit of volatility. If you would invest 303.00 in Huatian Hotel Group on December 1, 2024 and sell it today you would earn a total of 6.00 from holding Huatian Hotel Group or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Huatian Hotel Group
Performance |
| Timeline |
| Vanfund Urban Investment |
| Huatian Hotel Group |
Vanfund Urban and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Huatian Hotel
The main advantage of trading using opposite Vanfund Urban and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Vanfund Urban vs. Ziel Home Furnishing | Vanfund Urban vs. Jointo Energy Investment | Vanfund Urban vs. Harbin Hatou Investment | Vanfund Urban vs. Zhejiang Construction Investment |
| Huatian Hotel vs. Porton Fine Chemicals | Huatian Hotel vs. Epoxy Base Electronic | Huatian Hotel vs. Goke Microelectronics Co | Huatian Hotel vs. Liaoning Dingjide Petrochemical |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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