Correlation Analysis Between NorthWestern and Huazhu Group

This module allows you to analyze existing cross correlation between NorthWestern Corporation and Huazhu Group Limited. You can compare the effects of market volatilities on NorthWestern and Huazhu Group 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 NorthWestern with a short position of Huazhu Group. See also your portfolio center. Please also check ongoing floating volatility patterns of NorthWestern and Huazhu Group.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

NorthWestern  
00

Risk-Adjusted Performance

Over the last 30 days NorthWestern Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, NorthWestern is not utilizing all of its potentials. The ongoing stock price tumult, may contribute to shorter-term losses for the shareholders.
Huazhu Group Limited  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Huazhu Group Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively fragile essential indicators, Huazhu Group may actually be approaching a critical reversion point that can send shares even higher in December 2019.

NorthWestern and Huazhu Group Volatility Contrast

 Predicted Return Density 
      Returns 

NorthWestern Corp.  vs.  Huazhu Group Limited

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, NorthWestern Corporation is expected to under-perform the Huazhu Group. But the stock apears to be less risky and, when comparing its historical volatility, NorthWestern Corporation is 2.99 times less risky than Huazhu Group. The stock trades about -0.01 of its potential returns per unit of risk. The Huazhu Group Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,164  in Huazhu Group Limited on October 22, 2019 and sell it today you would earn a total of  331.00  from holding Huazhu Group Limited or generate 10.46% return on investment over 30 days.

Pair Corralation between NorthWestern and Huazhu Group

-0.34
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for NorthWestern and Huazhu Group

NorthWestern Corp. diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding NorthWestern Corp. and Huazhu Group Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Huazhu Group Limited and NorthWestern 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 NorthWestern Corporation are associated (or correlated) with Huazhu Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huazhu Group Limited has no effect on the direction of NorthWestern i.e. NorthWestern and Huazhu Group go up and down completely randomly.
See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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