Correlation Between Poly Real and Huafa Industrial
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By analyzing existing cross correlation between Poly Real Estate and Huafa Industrial Co, you can compare the effects of market volatilities on Poly Real and Huafa 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 Poly Real with a short position of Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Huafa Industrial.
Diversification Opportunities for Poly Real and Huafa Industrial
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Poly and Huafa is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial and Poly Real 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 Poly Real Estate are associated (or correlated) with Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Poly Real i.e., Poly Real and Huafa Industrial go up and down completely randomly.
Pair Corralation between Poly Real and Huafa Industrial
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the Huafa Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Poly Real Estate is 1.03 times less risky than Huafa Industrial. The stock trades about -0.27 of its potential returns per unit of risk. The Huafa Industrial Co is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 702.00 in Huafa Industrial Co on August 28, 2024 and sell it today you would lose (47.00) from holding Huafa Industrial Co or give up 6.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. Huafa Industrial Co
Performance |
| Timeline |
| Poly Real Estate |
| Huafa Industrial |
Poly Real and Huafa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Huafa Industrial
The main advantage of trading using opposite Poly Real and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, Huafa 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.| Poly Real vs. Hangzhou Gaoxin Rubber | Poly Real vs. Humanwell Healthcare Group | Poly Real vs. Renxin New Material | Poly Real vs. Suzhou Xingye Material |
| Huafa Industrial vs. Industrial and Commercial | Huafa Industrial vs. China Construction Bank | Huafa Industrial vs. Bank of China | Huafa Industrial vs. Agricultural Bank of |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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