Correlation Between Huatian Hotel and Shandong Himile
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By analyzing existing cross correlation between Huatian Hotel Group and Shandong Himile Mechanical, you can compare the effects of market volatilities on Huatian Hotel and Shandong Himile 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 Shandong Himile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Shandong Himile.
Diversification Opportunities for Huatian Hotel and Shandong Himile
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Huatian and Shandong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Shandong Himile Mechanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Himile Mech 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 Shandong Himile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Himile Mech has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Shandong Himile go up and down completely randomly.
Pair Corralation between Huatian Hotel and Shandong Himile
Assuming the 90 days trading horizon Huatian Hotel Group is expected to generate 1.52 times more return on investment than Shandong Himile. However, Huatian Hotel is 1.52 times more volatile than Shandong Himile Mechanical. It trades about 0.2 of its potential returns per unit of risk. Shandong Himile Mechanical is currently generating about 0.03 per unit of risk. If you would invest 283.00 in Huatian Hotel Group on September 14, 2024 and sell it today you would earn a total of 113.00 from holding Huatian Hotel Group or generate 39.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.28% |
Values | Daily Returns |
Huatian Hotel Group vs. Shandong Himile Mechanical
Performance |
Timeline |
Huatian Hotel Group |
Shandong Himile Mech |
Huatian Hotel and Shandong Himile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huatian Hotel and Shandong Himile
The main advantage of trading using opposite Huatian Hotel and Shandong Himile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Shandong Himile 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 Shandong Himile will offset losses from the drop in Shandong Himile's long position.Huatian Hotel vs. Ming Yang Smart | Huatian Hotel vs. 159681 | Huatian Hotel vs. 159005 | Huatian Hotel vs. Loctek Ergonomic Technology |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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