Correlation Between Chengdu Spaceon and Huatian Hotel
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Huatian Hotel Group, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Huatian Hotel.
Diversification Opportunities for Chengdu Spaceon and Huatian Hotel
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Huatian is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics 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 Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and Huatian Hotel go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Huatian Hotel
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 0.99 times more return on investment than Huatian Hotel. However, Chengdu Spaceon Electronics is 1.01 times less risky than Huatian Hotel. It trades about 0.07 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about 0.02 per unit of risk. If you would invest 1,311 in Chengdu Spaceon Electronics on October 24, 2024 and sell it today you would earn a total of 208.00 from holding Chengdu Spaceon Electronics or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Huatian Hotel Group
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Huatian Hotel Group |
Chengdu Spaceon and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Huatian Hotel
The main advantage of trading using opposite Chengdu Spaceon and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Tsingtao Brewery Co | Chengdu Spaceon vs. Shandong Polymer Biochemicals | Chengdu Spaceon vs. Shijiazhuang Tonhe Electronics | Chengdu Spaceon vs. Chongqing Brewery Co |
| Huatian Hotel vs. Goodwill E Health | Huatian Hotel vs. Sanbo Hospital Management | Huatian Hotel vs. CICC Fund Management | Huatian Hotel vs. Chengdu Spaceon Electronics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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