Correlation Between Huatian Hotel and Shenzhen Topway
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By analyzing existing cross correlation between Huatian Hotel Group and Shenzhen Topway Video, you can compare the effects of market volatilities on Huatian Hotel and Shenzhen Topway 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 Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Shenzhen Topway.
Diversification Opportunities for Huatian Hotel and Shenzhen Topway
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huatian and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Huatian Hotel and Shenzhen Topway
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 0.94 times more return on investment than Shenzhen Topway. However, Huatian Hotel Group is 1.07 times less risky than Shenzhen Topway. It trades about -0.01 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.04 per unit of risk. If you would invest 412.00 in Huatian Hotel Group on September 25, 2024 and sell it today you would lose (84.00) from holding Huatian Hotel Group or give up 20.39% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Huatian Hotel Group vs. Shenzhen Topway Video
Performance |
Timeline |
Huatian Hotel Group |
Shenzhen Topway Video |
Huatian Hotel and Shenzhen Topway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huatian Hotel and Shenzhen Topway
The main advantage of trading using opposite Huatian Hotel and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's 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 |
Shenzhen Topway vs. Industrial and Commercial | Shenzhen Topway vs. Kweichow Moutai Co | Shenzhen Topway vs. Agricultural Bank of | Shenzhen Topway vs. China Mobile Limited |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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