Correlation Between Hefei Urban and Maui Land

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Can any of the company-specific risk be diversified away by investing in both Hefei Urban and Maui Land 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 Hefei Urban and Maui Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hefei Urban Construction and Maui Land Pineapple, you can compare the effects of market volatilities on Hefei Urban and Maui Land 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 Hefei Urban with a short position of Maui Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Urban and Maui Land.

Diversification Opportunities for Hefei Urban and Maui Land

-0.81
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hefei and Maui is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Urban Construction and Maui Land Pineapple in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maui Land Pineapple and Hefei Urban 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 Hefei Urban Construction are associated (or correlated) with Maui Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maui Land Pineapple has no effect on the direction of Hefei Urban i.e., Hefei Urban and Maui Land go up and down completely randomly.

Pair Corralation between Hefei Urban and Maui Land

Assuming the 90 days trading horizon Hefei Urban Construction is expected to generate 1.96 times more return on investment than Maui Land. However, Hefei Urban is 1.96 times more volatile than Maui Land Pineapple. It trades about 0.21 of its potential returns per unit of risk. Maui Land Pineapple is currently generating about 0.0 per unit of risk. If you would invest  667.00  in Hefei Urban Construction on September 5, 2025 and sell it today you would earn a total of  543.00  from holding Hefei Urban Construction or generate 81.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy92.19%
ValuesDaily Returns

Hefei Urban Construction  vs.  Maui Land Pineapple

 Performance 
       Timeline  
Hefei Urban Construction 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hefei Urban Construction are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Hefei Urban sustained solid returns over the last few months and may actually be approaching a breakup point.
Maui Land Pineapple 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Maui Land Pineapple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Maui Land is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Hefei Urban and Maui Land Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hefei Urban and Maui Land

The main advantage of trading using opposite Hefei Urban and Maui Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Urban position performs unexpectedly, Maui Land 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 Maui Land will offset losses from the drop in Maui Land's long position.
The idea behind Hefei Urban Construction and Maui Land Pineapple 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.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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