Correlation Between Harbin Hatou and Huatian Hotel
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By analyzing existing cross correlation between Harbin Hatou Investment and Huatian Hotel Group, you can compare the effects of market volatilities on Harbin Hatou 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 Harbin Hatou with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Huatian Hotel.
Diversification Opportunities for Harbin Hatou and Huatian Hotel
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbin and Huatian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment 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 Harbin Hatou 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 Harbin Hatou Investment 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 Harbin Hatou i.e., Harbin Hatou and Huatian Hotel go up and down completely randomly.
Pair Corralation between Harbin Hatou and Huatian Hotel
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to generate 1.19 times more return on investment than Huatian Hotel. However, Harbin Hatou is 1.19 times more volatile than Huatian Hotel Group. It trades about 0.11 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about 0.06 per unit of risk. If you would invest 714.00 in Harbin Hatou Investment on September 5, 2024 and sell it today you would earn a total of 58.00 from holding Harbin Hatou Investment or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Huatian Hotel Group
Performance |
| Timeline |
| Harbin Hatou Investment |
| Huatian Hotel Group |
Harbin Hatou and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Huatian Hotel
The main advantage of trading using opposite Harbin Hatou and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou 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.| Harbin Hatou vs. Fujian Oriental Silver | Harbin Hatou vs. Xizi Clean Energy | Harbin Hatou vs. Pengxin International Mining | Harbin Hatou vs. Guangdong Shenglu Telecommunication |
| Huatian Hotel vs. Biwin Storage Technology | Huatian Hotel vs. PetroChina Co Ltd | Huatian Hotel vs. Industrial and Commercial | Huatian Hotel vs. China Construction Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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