Correlation Between Bank of Communications and Huatian Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of Communications and Huatian Hotel Group, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Huatian Hotel.
Diversification Opportunities for Bank of Communications and Huatian Hotel
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Huatian is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications 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 Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Huatian Hotel go up and down completely randomly.
Pair Corralation between Bank of Communications and Huatian Hotel
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.41 times more return on investment than Huatian Hotel. However, Bank of Communications is 2.42 times less risky than Huatian Hotel. It trades about 0.12 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 747.00 in Bank of Communications on September 28, 2024 and sell it today you would earn a total of 23.00 from holding Bank of Communications or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Huatian Hotel Group
Performance |
| Timeline |
| Bank of Communications |
| Huatian Hotel Group |
Bank of Communications and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Huatian Hotel
The main advantage of trading using opposite Bank of Communications and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Industrial and Commercial | Bank of Communications vs. Kweichow Moutai Co | Bank of Communications vs. Agricultural Bank of | Bank of Communications vs. China Mobile Limited |
| Huatian Hotel vs. Jiangxi Selon Industrial | Huatian Hotel vs. Qingdao Choho Industrial | Huatian Hotel vs. Dirui Industrial Co | Huatian Hotel vs. Beijing Wandong Medical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |