Correlation Between Changjiang Publishing and Huatian Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changjiang Publishing Media and Huatian Hotel Group, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Huatian Hotel.
Diversification Opportunities for Changjiang Publishing and Huatian Hotel
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Changjiang and Huatian is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media 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 Changjiang Publishing 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 Changjiang Publishing Media 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 Changjiang Publishing i.e., Changjiang Publishing and Huatian Hotel go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Huatian Hotel
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 0.7 times more return on investment than Huatian Hotel. However, Changjiang Publishing Media is 1.44 times less risky than Huatian Hotel. It trades about 0.04 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.02 per unit of risk. If you would invest 768.00 in Changjiang Publishing Media on October 30, 2024 and sell it today you would earn a total of 136.00 from holding Changjiang Publishing Media or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Huatian Hotel Group
Performance |
| Timeline |
| Changjiang Publishing |
| Huatian Hotel Group |
Changjiang Publishing and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Huatian Hotel
The main advantage of trading using opposite Changjiang Publishing and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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.The idea behind Changjiang Publishing Media and Huatian Hotel Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Huatian Hotel vs. Sharetronic Data Technology | Huatian Hotel vs. Anhui Jinhe Industrial | Huatian Hotel vs. Sinocelltech Group | Huatian Hotel vs. Cabio Biotech Wuhan |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |