Correlation Between 159681 and Huitong Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159681 and Huitong Construction Group, you can compare the effects of market volatilities on 159681 and Huitong Construction 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 159681 with a short position of Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Huitong Construction.
Diversification Opportunities for 159681 and Huitong Construction
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159681 and Huitong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong Construction and 159681 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 159681 are associated (or correlated) with Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of 159681 i.e., 159681 and Huitong Construction go up and down completely randomly.
Pair Corralation between 159681 and Huitong Construction
Assuming the 90 days trading horizon 159681 is expected to generate 0.93 times more return on investment than Huitong Construction. However, 159681 is 1.08 times less risky than Huitong Construction. It trades about 0.01 of its potential returns per unit of risk. Huitong Construction Group is currently generating about -0.02 per unit of risk. If you would invest 94.00 in 159681 on August 29, 2024 and sell it today you would earn a total of 1.00 from holding 159681 or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Huitong Construction Group
Performance |
| Timeline |
| 159681 |
| Huitong Construction |
159681 and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Huitong Construction
The main advantage of trading using opposite 159681 and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Huitong Construction 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 Huitong Construction will offset losses from the drop in Huitong Construction's long position.| 159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. 159005 |
| Huitong Construction vs. Ming Yang Smart | Huitong Construction vs. 159681 | Huitong Construction vs. 159005 | Huitong Construction vs. Loctek Ergonomic Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |