Correlation Between Shenzhen Noposion and Huatian Hotel
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Huatian Hotel Group, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Huatian Hotel.
Diversification Opportunities for Shenzhen Noposion and Huatian Hotel
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Huatian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Huatian Hotel go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Huatian Hotel
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.87 times more return on investment than Huatian Hotel. However, Shenzhen Noposion Agrochemicals is 1.15 times less risky than Huatian Hotel. It trades about 0.18 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about 0.11 per unit of risk. If you would invest 731.00 in Shenzhen Noposion Agrochemicals on August 29, 2024 and sell it today you would earn a total of 215.00 from holding Shenzhen Noposion Agrochemicals or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Huatian Hotel Group
Performance |
| Timeline |
| Shenzhen Noposion |
| Huatian Hotel Group |
Shenzhen Noposion and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Huatian Hotel
The main advantage of trading using opposite Shenzhen Noposion and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining | Shenzhen Noposion vs. Rongsheng Petrochemical Co |
| Huatian Hotel vs. Agricultural Bank of | Huatian Hotel vs. Industrial and Commercial | Huatian Hotel vs. Bank of China | Huatian Hotel vs. China Construction Bank |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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