Correlation Between Sunny Loan and Huatian Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sunny Loan Top and Huatian Hotel Group, you can compare the effects of market volatilities on Sunny Loan 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 Sunny Loan with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Huatian Hotel.
Diversification Opportunities for Sunny Loan and Huatian Hotel
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Huatian is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top 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 Sunny Loan 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 Sunny Loan Top 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 Sunny Loan i.e., Sunny Loan and Huatian Hotel go up and down completely randomly.
Pair Corralation between Sunny Loan and Huatian Hotel
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Huatian Hotel. In addition to that, Sunny Loan is 1.57 times more volatile than Huatian Hotel Group. It trades about -0.15 of its total potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.1 per unit of volatility. If you would invest 328.00 in Huatian Hotel Group on October 23, 2024 and sell it today you would lose (20.00) from holding Huatian Hotel Group or give up 6.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Huatian Hotel Group
Performance |
| Timeline |
| Sunny Loan Top |
| Huatian Hotel Group |
Sunny Loan and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Huatian Hotel
The main advantage of trading using opposite Sunny Loan and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan 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.| Sunny Loan vs. Fujian Longzhou Transportation | Sunny Loan vs. De Rucci Healthy | Sunny Loan vs. Shanghai Rongtai Health | Sunny Loan vs. Anhui Gujing Distillery |
| Huatian Hotel vs. Runjian Communication Co | Huatian Hotel vs. Dr Peng Telecom | Huatian Hotel vs. Sunny Loan Top | Huatian Hotel vs. Shanghai Yaoji Playing |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |