Correlation Between Shuhua Sports and Huatian Hotel
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By analyzing existing cross correlation between Shuhua Sports Co and Huatian Hotel Group, you can compare the effects of market volatilities on Shuhua Sports 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 Shuhua Sports with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Huatian Hotel.
Diversification Opportunities for Shuhua Sports and Huatian Hotel
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shuhua and Huatian is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co 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 Shuhua Sports 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 Shuhua Sports Co 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 Shuhua Sports i.e., Shuhua Sports and Huatian Hotel go up and down completely randomly.
Pair Corralation between Shuhua Sports and Huatian Hotel
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.96 times more return on investment than Huatian Hotel. However, Shuhua Sports Co is 1.04 times less risky than Huatian Hotel. It trades about 0.0 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.03 per unit of risk. If you would invest 1,011 in Shuhua Sports Co on October 18, 2024 and sell it today you would lose (183.00) from holding Shuhua Sports Co or give up 18.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shuhua Sports Co vs. Huatian Hotel Group
Performance |
| Timeline |
| Shuhua Sports |
| Huatian Hotel Group |
Shuhua Sports and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Huatian Hotel
The main advantage of trading using opposite Shuhua Sports and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports 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.| Shuhua Sports vs. Chinese Universe Publishing | Shuhua Sports vs. Ningbo Ligong Online | Shuhua Sports vs. Shanghai Yaoji Playing | Shuhua Sports vs. Jiangsu Jinling Sports |
| Huatian Hotel vs. Shuhua Sports Co | Huatian Hotel vs. Financial Street Holdings | Huatian Hotel vs. China Sports Industry | Huatian Hotel vs. Xinjiang Baodi Mining |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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