Correlation Between Shenyang Blue and Huatian Hotel
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By analyzing existing cross correlation between Shenyang Blue Silver and Huatian Hotel Group, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Huatian Hotel.
Diversification Opportunities for Shenyang Blue and Huatian Hotel
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Huatian is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and Huatian Hotel go up and down completely randomly.
Pair Corralation between Shenyang Blue and Huatian Hotel
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the Huatian Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Blue Silver is 1.13 times less risky than Huatian Hotel. The stock trades about -0.27 of its potential returns per unit of risk. The Huatian Hotel Group is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 359.00 in Huatian Hotel Group on November 1, 2024 and sell it today you would lose (56.00) from holding Huatian Hotel Group or give up 15.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Huatian Hotel Group
Performance |
| Timeline |
| Shenyang Blue Silver |
| Huatian Hotel Group |
Shenyang Blue and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Huatian Hotel
The main advantage of trading using opposite Shenyang Blue and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Yuanjie Semiconductor Technology | Shenyang Blue vs. Changjiang Publishing Media | Shenyang Blue vs. China Publishing Media | Shenyang Blue vs. Shanghai V Test Semiconductor |
| Huatian Hotel vs. Chenzhou Jingui Silver | Huatian Hotel vs. Guocheng Mining Co | Huatian Hotel vs. Shenyang Blue Silver | Huatian Hotel vs. Jiangxi Naipu Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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