Correlation Between Chinese Universe and Huatian Hotel
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By analyzing existing cross correlation between Chinese Universe Publishing and Huatian Hotel Group, you can compare the effects of market volatilities on Chinese Universe and Huatian Hotel 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 Chinese Universe with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Huatian Hotel.
Diversification Opportunities for Chinese Universe and Huatian Hotel
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and Huatian is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Chinese Universe i.e., Chinese Universe and Huatian Hotel go up and down completely randomly.
Pair Corralation between Chinese Universe and Huatian Hotel
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to generate 1.06 times more return on investment than Huatian Hotel. However, Chinese Universe is 1.06 times more volatile than Huatian Hotel Group. It trades about 0.03 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.03 per unit of risk. If you would invest 913.00 in Chinese Universe Publishing on October 16, 2024 and sell it today you would earn a total of 235.00 from holding Chinese Universe Publishing or generate 25.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Huatian Hotel Group
Performance |
| Timeline |
| Chinese Universe Pub |
| Huatian Hotel Group |
Chinese Universe and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Huatian Hotel
The main advantage of trading using opposite Chinese Universe and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Chinese Universe vs. Agricultural Bank of | Chinese Universe vs. Ping An Insurance | Chinese Universe vs. UE Furniture Co | Chinese Universe vs. Postal Savings Bank |
| Huatian Hotel vs. Xinhua Winshare Publishing | Huatian Hotel vs. Changjiang Publishing Media | Huatian Hotel vs. Chinese Universe Publishing | Huatian Hotel vs. Cowealth Medical China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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