Correlation Between China State and Hithink RoyalFlush
Specify exactly 2 symbols:
By analyzing existing cross correlation between China State Construction and Hithink RoyalFlush Info, you can compare the effects of market volatilities on China State and Hithink RoyalFlush 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 China State with a short position of Hithink RoyalFlush. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Hithink RoyalFlush.
Diversification Opportunities for China State and Hithink RoyalFlush
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Hithink is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Hithink RoyalFlush Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hithink RoyalFlush Info and China State 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 China State Construction are associated (or correlated) with Hithink RoyalFlush. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hithink RoyalFlush Info has no effect on the direction of China State i.e., China State and Hithink RoyalFlush go up and down completely randomly.
Pair Corralation between China State and Hithink RoyalFlush
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Hithink RoyalFlush. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 3.84 times less risky than Hithink RoyalFlush. The stock trades about -0.07 of its potential returns per unit of risk. The Hithink RoyalFlush Info is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 20,088 in Hithink RoyalFlush Info on August 29, 2024 and sell it today you would earn a total of 8,333 from holding Hithink RoyalFlush Info or generate 41.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China State Construction vs. Hithink RoyalFlush Info
Performance |
Timeline |
China State Construction |
Hithink RoyalFlush Info |
China State and Hithink RoyalFlush Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China State and Hithink RoyalFlush
The main advantage of trading using opposite China State and Hithink RoyalFlush positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Hithink RoyalFlush 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 Hithink RoyalFlush will offset losses from the drop in Hithink RoyalFlush's long position.China State vs. Leaguer Shenzhen MicroElectronics | China State vs. Shanghai CEO Environmental | China State vs. Bomin Electronics Co | China State vs. Zhejiang Kingland Pipeline |
Hithink RoyalFlush vs. Agricultural Bank of | Hithink RoyalFlush vs. Industrial and Commercial | Hithink RoyalFlush vs. Bank of China | Hithink RoyalFlush vs. PetroChina Co Ltd |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |