Correlation Between Huatian Hotel and Beijing HuaYuanYiTong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huatian Hotel Group and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Huatian Hotel and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huatian Hotel and Beijing HuaYuanYiTong.
Diversification Opportunities for Huatian Hotel and Beijing HuaYuanYiTong
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huatian and Beijing is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Huatian Hotel Group and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Huatian Hotel i.e., Huatian Hotel and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Huatian Hotel and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Huatian Hotel is expected to generate 3.06 times less return on investment than Beijing HuaYuanYiTong. But when comparing it to its historical volatility, Huatian Hotel Group is 1.06 times less risky than Beijing HuaYuanYiTong. It trades about 0.04 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 876.00 in Beijing HuaYuanYiTong Thermal on September 25, 2024 and sell it today you would earn a total of 181.00 from holding Beijing HuaYuanYiTong Thermal or generate 20.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Huatian Hotel Group vs. Beijing HuaYuanYiTong Thermal
Performance |
Timeline |
Huatian Hotel Group |
Beijing HuaYuanYiTong |
Huatian Hotel and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huatian Hotel and Beijing HuaYuanYiTong
The main advantage of trading using opposite Huatian Hotel and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huatian Hotel position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong'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 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |