Correlation Between Yantai North and Huatian Hotel
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By analyzing existing cross correlation between Yantai North Andre and Huatian Hotel Group, you can compare the effects of market volatilities on Yantai North 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 Yantai North with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Huatian Hotel.
Diversification Opportunities for Yantai North and Huatian Hotel
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yantai and Huatian is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre 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 Yantai North 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 Yantai North Andre 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 Yantai North i.e., Yantai North and Huatian Hotel go up and down completely randomly.
Pair Corralation between Yantai North and Huatian Hotel
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 1.13 times more return on investment than Huatian Hotel. However, Yantai North is 1.13 times more volatile than Huatian Hotel Group. It trades about 0.15 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about 0.11 per unit of risk. If you would invest 2,115 in Yantai North Andre on August 29, 2024 and sell it today you would earn a total of 654.00 from holding Yantai North Andre or generate 30.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Huatian Hotel Group
Performance |
| Timeline |
| Yantai North Andre |
| Huatian Hotel Group |
Yantai North and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Huatian Hotel
The main advantage of trading using opposite Yantai North and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North 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.| Yantai North vs. Mengtian Home Group | Yantai North vs. Xinjiang Tianrun Dairy | Yantai North vs. Guilin Seamild Foods | Yantai North vs. Nanxing Furniture Machinery |
| Huatian Hotel vs. Agricultural Bank of | Huatian Hotel vs. Industrial and Commercial | Huatian Hotel vs. Bank of China | 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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