Correlation Between Huafa Industrial and Ziel Home
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By analyzing existing cross correlation between Huafa Industrial Co and Ziel Home Furnishing, you can compare the effects of market volatilities on Huafa Industrial and Ziel Home 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 Huafa Industrial with a short position of Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Ziel Home.
Diversification Opportunities for Huafa Industrial and Ziel Home
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huafa and Ziel is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Ziel Home go up and down completely randomly.
Pair Corralation between Huafa Industrial and Ziel Home
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the Ziel Home. But the stock apears to be less risky and, when comparing its historical volatility, Huafa Industrial Co is 1.49 times less risky than Ziel Home. The stock trades about -0.1 of its potential returns per unit of risk. The Ziel Home Furnishing is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,876 in Ziel Home Furnishing on August 31, 2024 and sell it today you would earn a total of 150.00 from holding Ziel Home Furnishing or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Ziel Home Furnishing
Performance |
| Timeline |
| Huafa Industrial |
| Ziel Home Furnishing |
Huafa Industrial and Ziel Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Ziel Home
The main advantage of trading using opposite Huafa Industrial and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.| Huafa Industrial vs. Kweichow Moutai Co | Huafa Industrial vs. Contemporary Amperex Technology | Huafa Industrial vs. G bits Network Technology | Huafa Industrial vs. BYD Co Ltd |
| Ziel Home vs. China State Construction | Ziel Home vs. China Merchants Shekou | Ziel Home vs. Huafa Industrial Co | Ziel Home vs. China International Capital |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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