Correlation Between Huafa Industrial and Poly Real
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By analyzing existing cross correlation between Huafa Industrial Co and Poly Real Estate, you can compare the effects of market volatilities on Huafa Industrial and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Poly Real.
Diversification Opportunities for Huafa Industrial and Poly Real
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huafa and Poly is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Poly Real go up and down completely randomly.
Pair Corralation between Huafa Industrial and Poly Real
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the Poly Real. But the stock apears to be less risky and, when comparing its historical volatility, Huafa Industrial Co is 1.09 times less risky than Poly Real. The stock trades about -0.25 of its potential returns per unit of risk. The Poly Real Estate is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Poly Real Estate on November 2, 2024 and sell it today you would lose (36.00) from holding Poly Real Estate or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Poly Real Estate
Performance |
| Timeline |
| Huafa Industrial |
| Poly Real Estate |
Huafa Industrial and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Poly Real
The main advantage of trading using opposite Huafa Industrial and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Huafa Industrial vs. Spring Airlines Co | Huafa Industrial vs. Chengtun Mining Group | Huafa Industrial vs. Xinjiang Baodi Mining | Huafa Industrial vs. North Copper Shanxi |
| Poly Real vs. Bloomage Biotechnology Corp | Poly Real vs. Fujian Wanchen Biotechnology | Poly Real vs. Shanghai Ziyan Foods | Poly Real vs. Yili Chuanning 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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