Correlation Between BEIJING HAOHUA and HITHINK ROYALFLUSH

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BEIJING HAOHUA and HITHINK ROYALFLUSH at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BEIJING HAOHUA and HITHINK ROYALFLUSH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEIJING HAOHUA ENERGY and HITHINK ROYALFLUSH, you can compare the effects of market volatilities on BEIJING HAOHUA and HITHINK ROYALFLUSH 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 BEIJING HAOHUA with a short position of HITHINK ROYALFLUSH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEIJING HAOHUA and HITHINK ROYALFLUSH.

Diversification Opportunities for BEIJING HAOHUA and HITHINK ROYALFLUSH

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BEIJING and HITHINK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BEIJING HAOHUA ENERGY RESOURCE and HITHINK ROYALFLUSH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HITHINK ROYALFLUSH and BEIJING HAOHUA 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 BEIJING HAOHUA ENERGY are associated (or correlated) with HITHINK ROYALFLUSH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HITHINK ROYALFLUSH has no effect on the direction of BEIJING HAOHUA i.e., BEIJING HAOHUA and HITHINK ROYALFLUSH go up and down completely randomly.

Pair Corralation between BEIJING HAOHUA and HITHINK ROYALFLUSH

If you would invest  0.00  in HITHINK ROYALFLUSH on May 14, 2022 and sell it today you would earn a total of  0.00  from holding HITHINK ROYALFLUSH or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BEIJING HAOHUA ENERGY RESOURCE  vs.  HITHINK ROYALFLUSH

 Performance (%) 
       Timeline  
BEIJING HAOHUA ENERGY 
BEIJING Performance
0 of 100
Over the last 90 days BEIJING HAOHUA ENERGY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BEIJING HAOHUA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
HITHINK ROYALFLUSH 
HITHINK Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in HITHINK ROYALFLUSH are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, HITHINK ROYALFLUSH may actually be approaching a critical reversion point that can send shares even higher in September 2022.

HITHINK Price Channel

BEIJING HAOHUA and HITHINK ROYALFLUSH Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BEIJING HAOHUA and HITHINK ROYALFLUSH

The main advantage of trading using opposite BEIJING HAOHUA and HITHINK ROYALFLUSH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEIJING HAOHUA position performs unexpectedly, HITHINK ROYALFLUSH 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 HITHINK ROYALFLUSH will offset losses from the drop in HITHINK ROYALFLUSH's long position.
The idea behind BEIJING HAOHUA ENERGY and HITHINK ROYALFLUSH pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

HITHINK ROYALFLUSH

Pair trading matchups for HITHINK ROYALFLUSH

Essential Properties vs. HITHINK ROYALFLUSH
Ark Innovation vs. HITHINK ROYALFLUSH
Universal Health vs. HITHINK ROYALFLUSH
Rolls Royce vs. HITHINK ROYALFLUSH
Cto Realty vs. HITHINK ROYALFLUSH
Prog Hldgs vs. HITHINK ROYALFLUSH
Horizon Therapeutics vs. HITHINK ROYALFLUSH
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against HITHINK ROYALFLUSH as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. HITHINK ROYALFLUSH's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, HITHINK ROYALFLUSH's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to HITHINK ROYALFLUSH.
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go