Correlation Between Juewei Food and Huatian Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Juewei Food Co and Huatian Hotel Group, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Huatian Hotel.
Diversification Opportunities for Juewei Food and Huatian Hotel
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juewei and Huatian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co 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 Juewei Food 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 Juewei Food Co 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 Juewei Food i.e., Juewei Food and Huatian Hotel go up and down completely randomly.
Pair Corralation between Juewei Food and Huatian Hotel
Assuming the 90 days trading horizon Juewei Food Co is expected to generate 1.38 times more return on investment than Huatian Hotel. However, Juewei Food is 1.38 times more volatile than Huatian Hotel Group. It trades about 0.16 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about 0.04 per unit of risk. If you would invest 1,280 in Juewei Food Co on September 25, 2024 and sell it today you would earn a total of 595.00 from holding Juewei Food Co or generate 46.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Juewei Food Co vs. Huatian Hotel Group
Performance |
Timeline |
Juewei Food |
Huatian Hotel Group |
Juewei Food and Huatian Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juewei Food and Huatian Hotel
The main advantage of trading using opposite Juewei Food and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.Juewei Food vs. Ming Yang Smart | Juewei Food vs. 159681 | Juewei Food vs. 159005 | Juewei Food vs. Loctek Ergonomic Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |