Correlation Between Sichuan Teway and Huitong Construction
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By analyzing existing cross correlation between Sichuan Teway Food and Huitong Construction Group, you can compare the effects of market volatilities on Sichuan Teway and Huitong Construction 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 Sichuan Teway with a short position of Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Huitong Construction.
Diversification Opportunities for Sichuan Teway and Huitong Construction
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Huitong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong Construction and Sichuan Teway 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 Sichuan Teway Food are associated (or correlated) with Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of Sichuan Teway i.e., Sichuan Teway and Huitong Construction go up and down completely randomly.
Pair Corralation between Sichuan Teway and Huitong Construction
Assuming the 90 days trading horizon Sichuan Teway is expected to generate 2.05 times less return on investment than Huitong Construction. But when comparing it to its historical volatility, Sichuan Teway Food is 1.36 times less risky than Huitong Construction. It trades about 0.05 of its potential returns per unit of risk. Huitong Construction Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 484.00 in Huitong Construction Group on December 1, 2024 and sell it today you would earn a total of 10.00 from holding Huitong Construction Group or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Huitong Construction Group
Performance |
| Timeline |
| Sichuan Teway Food |
| Huitong Construction |
Sichuan Teway and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Huitong Construction
The main advantage of trading using opposite Sichuan Teway and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway position performs unexpectedly, Huitong Construction 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 Huitong Construction will offset losses from the drop in Huitong Construction's long position.| Sichuan Teway vs. Beijing Kingsoft Office | Sichuan Teway vs. Shenzhen Topway Video | Sichuan Teway vs. Montage Technology Co | Sichuan Teway vs. Digiwin Software Co |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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