Correlation Between Goodwill E and Huatian Hotel
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By analyzing existing cross correlation between Goodwill E Health and Huatian Hotel Group, you can compare the effects of market volatilities on Goodwill E 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 Goodwill E with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodwill E and Huatian Hotel.
Diversification Opportunities for Goodwill E and Huatian Hotel
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goodwill and Huatian is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Goodwill E Health 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 Goodwill E 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 Goodwill E Health 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 Goodwill E i.e., Goodwill E and Huatian Hotel go up and down completely randomly.
Pair Corralation between Goodwill E and Huatian Hotel
Assuming the 90 days trading horizon Goodwill E Health is expected to generate 1.52 times more return on investment than Huatian Hotel. However, Goodwill E is 1.52 times more volatile than Huatian Hotel Group. It trades about 0.02 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.16 per unit of risk. If you would invest 2,394 in Goodwill E Health on November 3, 2024 and sell it today you would lose (1.00) from holding Goodwill E Health or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodwill E Health vs. Huatian Hotel Group
Performance |
| Timeline |
| Goodwill E Health |
| Huatian Hotel Group |
Goodwill E and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodwill E and Huatian Hotel
The main advantage of trading using opposite Goodwill E and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodwill E 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.| Goodwill E vs. Dareway Software Co | Goodwill E vs. Inspur Software Co | Goodwill E vs. Glodon Software Co | Goodwill E vs. Quectel Wireless Solutions |
| Huatian Hotel vs. Ming Yang Smart | Huatian Hotel vs. 159681 | Huatian Hotel vs. 159005 | Huatian Hotel vs. Loctek Ergonomic Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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