Correlation Between Shanghai Yaoji and Huatian Hotel
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Huatian Hotel Group, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Huatian Hotel.
Diversification Opportunities for Shanghai Yaoji and Huatian Hotel
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Huatian is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing 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 Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Huatian Hotel go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Huatian Hotel
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.3 times more return on investment than Huatian Hotel. However, Shanghai Yaoji is 1.3 times more volatile than Huatian Hotel Group. It trades about -0.03 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.1 per unit of risk. If you would invest 2,850 in Shanghai Yaoji Playing on October 23, 2024 and sell it today you would lose (95.00) from holding Shanghai Yaoji Playing or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Huatian Hotel Group
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Huatian Hotel Group |
Shanghai Yaoji and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Huatian Hotel
The main advantage of trading using opposite Shanghai Yaoji and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.| Shanghai Yaoji vs. CITIC Metal Co | Shanghai Yaoji vs. Yingde Greatchem Chemicals | Shanghai Yaoji vs. Miracll Chemicals Co | Shanghai Yaoji vs. Porton Fine Chemicals |
| Huatian Hotel vs. Runjian Communication Co | Huatian Hotel vs. Dr Peng Telecom | Huatian Hotel vs. Sunny Loan Top | Huatian Hotel vs. Shanghai Yaoji Playing |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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