Correlation Between Shanghai Broadband and Huatian Hotel
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By analyzing existing cross correlation between Shanghai Broadband Technology and Huatian Hotel Group, you can compare the effects of market volatilities on Shanghai Broadband 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 Shanghai Broadband with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Huatian Hotel.
Diversification Opportunities for Shanghai Broadband and Huatian Hotel
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Huatian is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology 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 Shanghai Broadband 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 Shanghai Broadband Technology 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 Shanghai Broadband i.e., Shanghai Broadband and Huatian Hotel go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Huatian Hotel
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 0.97 times more return on investment than Huatian Hotel. However, Shanghai Broadband Technology is 1.03 times less risky than Huatian Hotel. It trades about -0.14 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.21 per unit of risk. If you would invest 356.00 in Shanghai Broadband Technology on October 20, 2024 and sell it today you would lose (34.00) from holding Shanghai Broadband Technology or give up 9.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Huatian Hotel Group
Performance |
| Timeline |
| Shanghai Broadband |
| Huatian Hotel Group |
Shanghai Broadband and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Huatian Hotel
The main advantage of trading using opposite Shanghai Broadband and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband 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.| Shanghai Broadband vs. Jiujiang Shanshui Technology | Shanghai Broadband vs. Digiwin Software Co | Shanghai Broadband vs. Kuangda Technology Group | Shanghai Broadband vs. Sharetronic Data Technology |
| Huatian Hotel vs. Chongqing Shunbo Aluminum | Huatian Hotel vs. Shanghai Broadband Technology | Huatian Hotel vs. CITIC Metal Co | Huatian Hotel vs. ZYF Lopsking Aluminum |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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