Correlation Between Xinjiang Baodi and Huatian Hotel
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Huatian Hotel Group, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Huatian Hotel.
Diversification Opportunities for Xinjiang Baodi and Huatian Hotel
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinjiang and Huatian is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining 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 Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Huatian Hotel go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Huatian Hotel
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.86 times more return on investment than Huatian Hotel. However, Xinjiang Baodi Mining is 1.16 times less risky than Huatian Hotel. It trades about 0.02 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 596.00 in Xinjiang Baodi Mining on October 18, 2024 and sell it today you would earn a total of 18.00 from holding Xinjiang Baodi Mining or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Huatian Hotel Group
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Huatian Hotel Group |
Xinjiang Baodi and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Huatian Hotel
The main advantage of trading using opposite Xinjiang Baodi and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Jinsanjiang Silicon Material | Xinjiang Baodi vs. Shenzhen Noposion Agrochemicals | Xinjiang Baodi vs. Sanbo Hospital Management | Xinjiang Baodi vs. Harvest Fund Management |
| Huatian Hotel vs. Shuhua Sports Co | Huatian Hotel vs. Financial Street Holdings | Huatian Hotel vs. China Sports Industry | Huatian Hotel vs. Xinjiang Baodi Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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