Correlation Between Yunnan Jianzhijia and Huatian Hotel
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Huatian Hotel Group, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Huatian Hotel.
Diversification Opportunities for Yunnan Jianzhijia and Huatian Hotel
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Huatian is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Huatian Hotel go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Huatian Hotel
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Huatian Hotel. In addition to that, Yunnan Jianzhijia is 1.02 times more volatile than Huatian Hotel Group. It trades about -0.07 of its total potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.01 per unit of volatility. If you would invest 407.00 in Huatian Hotel Group on September 3, 2024 and sell it today you would lose (60.00) from holding Huatian Hotel Group or give up 14.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Huatian Hotel Group
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Huatian Hotel Group |
Yunnan Jianzhijia and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Huatian Hotel
The main advantage of trading using opposite Yunnan Jianzhijia and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Beijing Wantai Biological | Yunnan Jianzhijia vs. Aluminum Corp of | Yunnan Jianzhijia vs. COL Digital Publishing | Yunnan Jianzhijia vs. Shaanxi Meineng Clean |
| Huatian Hotel vs. PetroChina Co Ltd | Huatian Hotel vs. China Mobile Limited | Huatian Hotel vs. Industrial and Commercial | Huatian Hotel vs. China Life Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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