Correlation Between Hengli Industrial and Huaxia Fund
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Industrial Development and Huaxia Fund Management, you can compare the effects of market volatilities on Hengli Industrial and Huaxia Fund 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 Hengli Industrial with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Huaxia Fund.
Diversification Opportunities for Hengli Industrial and Huaxia Fund
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hengli and Huaxia is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Huaxia Fund go up and down completely randomly.
Pair Corralation between Hengli Industrial and Huaxia Fund
Assuming the 90 days trading horizon Hengli Industrial is expected to generate 7.44 times less return on investment than Huaxia Fund. In addition to that, Hengli Industrial is 2.04 times more volatile than Huaxia Fund Management. It trades about 0.02 of its total potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.25 per unit of volatility. If you would invest 258.00 in Huaxia Fund Management on November 27, 2024 and sell it today you would earn a total of 57.00 from holding Huaxia Fund Management or generate 22.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Huaxia Fund Management
Performance |
| Timeline |
| Hengli Industrial |
| Huaxia Fund Management |
Hengli Industrial and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Huaxia Fund
The main advantage of trading using opposite Hengli Industrial and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Huaxia Fund 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 Huaxia Fund will offset losses from the drop in Huaxia Fund's long position.| Hengli Industrial vs. Vohringer Home Technology | Hengli Industrial vs. Mengtian Home Group | Hengli Industrial vs. A Zenith Home Furnishings | Hengli Industrial vs. Hubei Forbon Technology |
| Huaxia Fund vs. Simei Media Co | Huaxia Fund vs. Wasu Media Holding | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. Postal Savings Bank |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |