Correlation Between Xinhua Winshare and Huatian Hotel
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Huatian Hotel Group, you can compare the effects of market volatilities on Xinhua Winshare 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 Xinhua Winshare with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Huatian Hotel.
Diversification Opportunities for Xinhua Winshare and Huatian Hotel
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xinhua and Huatian is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing 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 Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and Huatian Hotel go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Huatian Hotel
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.69 times more return on investment than Huatian Hotel. However, Xinhua Winshare Publishing is 1.44 times less risky than Huatian Hotel. It trades about 0.03 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 1,373 in Xinhua Winshare Publishing on October 30, 2024 and sell it today you would earn a total of 136.00 from holding Xinhua Winshare Publishing or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Huatian Hotel Group
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Huatian Hotel Group |
Xinhua Winshare and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Huatian Hotel
The main advantage of trading using opposite Xinhua Winshare and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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.| Xinhua Winshare vs. Heren Health Co | Xinhua Winshare vs. Impulse Qingdao Health | Xinhua Winshare vs. PKU HealthCare Corp | Xinhua Winshare vs. Sanquan Food Co |
| Huatian Hotel vs. Sharetronic Data Technology | Huatian Hotel vs. Anhui Jinhe Industrial | Huatian Hotel vs. Sinocelltech Group | Huatian Hotel vs. Cabio Biotech Wuhan |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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