Correlation Between Hua Xia and Hengli Industrial
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By analyzing existing cross correlation between Hua Xia Bank and Hengli Industrial Development, you can compare the effects of market volatilities on Hua Xia and Hengli Industrial 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 Hua Xia with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Hengli Industrial.
Diversification Opportunities for Hua Xia and Hengli Industrial
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hua and Hengli is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Hua Xia 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 Hua Xia Bank are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Hua Xia i.e., Hua Xia and Hengli Industrial go up and down completely randomly.
Pair Corralation between Hua Xia and Hengli Industrial
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.46 times more return on investment than Hengli Industrial. However, Hua Xia Bank is 2.16 times less risky than Hengli Industrial. It trades about 0.04 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.01 per unit of risk. If you would invest 677.00 in Hua Xia Bank on October 14, 2024 and sell it today you would earn a total of 71.00 from holding Hua Xia Bank or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Hengli Industrial Development
Performance |
| Timeline |
| Hua Xia Bank |
| Hengli Industrial |
Hua Xia and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Hengli Industrial
The main advantage of trading using opposite Hua Xia and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Hua Xia vs. Ye Chiu Metal | Hua Xia vs. Anji Foodstuff Co | Hua Xia vs. Shantou Wanshun Package | Hua Xia vs. Shandong Hongchuang Aluminum |
| Hengli Industrial vs. GRG Banking Equipment | Hengli Industrial vs. Tongyu Communication | Hengli Industrial vs. Agricultural Bank of | Hengli Industrial vs. Hua Xia Bank |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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