Correlation Between GRINM Semiconductor and Huatian Hotel
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Huatian Hotel Group, you can compare the effects of market volatilities on GRINM Semiconductor 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 GRINM Semiconductor with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Huatian Hotel.
Diversification Opportunities for GRINM Semiconductor and Huatian Hotel
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRINM and Huatian is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials 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 GRINM Semiconductor 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 GRINM Semiconductor Materials 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 GRINM Semiconductor i.e., GRINM Semiconductor and Huatian Hotel go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Huatian Hotel
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the Huatian Hotel. But the stock apears to be less risky and, when comparing its historical volatility, GRINM Semiconductor Materials is 1.03 times less risky than Huatian Hotel. The stock trades about -0.02 of its potential returns per unit of risk. The Huatian Hotel Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 442.00 in Huatian Hotel Group on August 29, 2024 and sell it today you would lose (100.00) from holding Huatian Hotel Group or give up 22.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Huatian Hotel Group
Performance |
| Timeline |
| GRINM Semiconductor |
| Huatian Hotel Group |
GRINM Semiconductor and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Huatian Hotel
The main advantage of trading using opposite GRINM Semiconductor and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor 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.| GRINM Semiconductor vs. Zhejiang Yayi Metal | GRINM Semiconductor vs. North Huajin Chemical | GRINM Semiconductor vs. Keda Clean Energy | GRINM Semiconductor vs. Jonjee Hi tech Industrial |
| Huatian Hotel vs. Biwin Storage Technology | Huatian Hotel vs. PetroChina Co Ltd | Huatian Hotel vs. Industrial and Commercial | 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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