Correlation Between Huatian Hotel and China Nonferrous
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By analyzing existing cross correlation between Huatian Hotel Group and China Nonferrous Metal, you can compare the effects of market volatilities on Huatian Hotel and China Nonferrous 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 Huatian Hotel with a short position of China Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and China Nonferrous.
Diversification Opportunities for Huatian Hotel and China Nonferrous
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huatian and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and China Nonferrous Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Nonferrous Metal and Huatian Hotel 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 Huatian Hotel Group are associated (or correlated) with China Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Nonferrous Metal has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and China Nonferrous go up and down completely randomly.
Pair Corralation between Huatian Hotel and China Nonferrous
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 1.1 times more return on investment than China Nonferrous. However, Huatian Hotel is 1.1 times more volatile than China Nonferrous Metal. It trades about 0.06 of its potential returns per unit of risk. China Nonferrous Metal is currently generating about 0.01 per unit of risk. If you would invest 278.00 in Huatian Hotel Group on September 25, 2024 and sell it today you would earn a total of 50.00 from holding Huatian Hotel Group or generate 17.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Huatian Hotel Group vs. China Nonferrous Metal
Performance |
Timeline |
Huatian Hotel Group |
China Nonferrous Metal |
Huatian Hotel and China Nonferrous Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huatian Hotel and China Nonferrous
The main advantage of trading using opposite Huatian Hotel and China Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, China Nonferrous 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 China Nonferrous will offset losses from the drop in China Nonferrous' long position.Huatian Hotel vs. Bank of China | Huatian Hotel vs. Kweichow Moutai Co | Huatian Hotel vs. PetroChina Co Ltd | Huatian Hotel vs. Bank of Communications |
China Nonferrous vs. Zijin Mining Group | China Nonferrous vs. Wanhua Chemical Group | China Nonferrous vs. Baoshan Iron Steel | China Nonferrous vs. Shandong Gold 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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