Correlation Between China Construction and Huatian Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Construction Bank and Huatian Hotel Group, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Huatian Hotel.
Diversification Opportunities for China Construction and Huatian Hotel
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Huatian is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank 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 China Construction 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 Construction Bank 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 China Construction i.e., China Construction and Huatian Hotel go up and down completely randomly.
Pair Corralation between China Construction and Huatian Hotel
Assuming the 90 days trading horizon China Construction Bank is expected to under-perform the Huatian Hotel. But the stock apears to be less risky and, when comparing its historical volatility, China Construction Bank is 3.69 times less risky than Huatian Hotel. The stock trades about -0.02 of its potential returns per unit of risk. The Huatian Hotel Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Huatian Hotel Group on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Huatian Hotel Group or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Huatian Hotel Group
Performance |
| Timeline |
| China Construction Bank |
| Huatian Hotel Group |
China Construction and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Huatian Hotel
The main advantage of trading using opposite China Construction and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Zhongtong Guomai Communication | China Construction vs. China Satellite Communications | China Construction vs. SUNSEA Telecommunications Co | China Construction vs. Omnijoi Media Corp |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world |