Correlation Between Hua Xia and Taihai Manoir
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By analyzing existing cross correlation between Hua Xia Bank and Taihai Manoir Nuclear, you can compare the effects of market volatilities on Hua Xia and Taihai Manoir 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 Taihai Manoir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Taihai Manoir.
Diversification Opportunities for Hua Xia and Taihai Manoir
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hua and Taihai is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Taihai Manoir Nuclear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taihai Manoir Nuclear 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 Taihai Manoir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taihai Manoir Nuclear has no effect on the direction of Hua Xia i.e., Hua Xia and Taihai Manoir go up and down completely randomly.
Pair Corralation between Hua Xia and Taihai Manoir
Assuming the 90 days trading horizon Hua Xia is expected to generate 1.86 times less return on investment than Taihai Manoir. But when comparing it to its historical volatility, Hua Xia Bank is 2.58 times less risky than Taihai Manoir. It trades about 0.24 of its potential returns per unit of risk. Taihai Manoir Nuclear is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 473.00 in Taihai Manoir Nuclear on September 13, 2024 and sell it today you would earn a total of 78.00 from holding Taihai Manoir Nuclear or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hua Xia Bank vs. Taihai Manoir Nuclear
Performance |
| Timeline |
| Hua Xia Bank |
| Taihai Manoir Nuclear |
Hua Xia and Taihai Manoir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Taihai Manoir
The main advantage of trading using opposite Hua Xia and Taihai Manoir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, Taihai Manoir 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 Taihai Manoir will offset losses from the drop in Taihai Manoir's long position.| Hua Xia vs. Industrial and Commercial | Hua Xia vs. China Construction Bank | Hua Xia vs. Bank of China | Hua Xia vs. Agricultural Bank of |
| Taihai Manoir vs. Yili Chuanning Biotechnology | Taihai Manoir vs. ROPEOK Technology Group | Taihai Manoir vs. Tianjin Ruixin Technology | Taihai Manoir vs. Changchun BCHT Biotechnology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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