Correlation Between Jiangxi Selon and Huatian Hotel
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By analyzing existing cross correlation between Jiangxi Selon Industrial and Huatian Hotel Group, you can compare the effects of market volatilities on Jiangxi Selon 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 Jiangxi Selon with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Huatian Hotel.
Diversification Opportunities for Jiangxi Selon and Huatian Hotel
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangxi and Huatian is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial 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 Jiangxi Selon 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 Jiangxi Selon Industrial 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 Jiangxi Selon i.e., Jiangxi Selon and Huatian Hotel go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Huatian Hotel
Assuming the 90 days trading horizon Jiangxi Selon Industrial is expected to generate 0.61 times more return on investment than Huatian Hotel. However, Jiangxi Selon Industrial is 1.65 times less risky than Huatian Hotel. It trades about 0.09 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.39 per unit of risk. If you would invest 782.00 in Jiangxi Selon Industrial on October 16, 2024 and sell it today you would earn a total of 25.00 from holding Jiangxi Selon Industrial or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jiangxi Selon Industrial vs. Huatian Hotel Group
Performance |
| Timeline |
| Jiangxi Selon Industrial |
| Huatian Hotel Group |
Jiangxi Selon and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Selon and Huatian Hotel
The main advantage of trading using opposite Jiangxi Selon and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon 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.| Jiangxi Selon vs. Xinjiang Beixin RoadBridge | Jiangxi Selon vs. Jonjee Hi tech Industrial | Jiangxi Selon vs. Sichuan Yahua Industrial | Jiangxi Selon vs. Hangzhou Arcvideo Technology |
| Huatian Hotel vs. Xinhua Winshare Publishing | Huatian Hotel vs. Changjiang Publishing Media | Huatian Hotel vs. Chinese Universe Publishing | Huatian Hotel vs. Cowealth Medical China |
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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