Correlation Between City Development and Huaxia Fund
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By analyzing existing cross correlation between City Development Environment and Huaxia Fund Management, you can compare the effects of market volatilities on City Development 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 City Development with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Development and Huaxia Fund.
Diversification Opportunities for City Development and Huaxia Fund
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between City and Huaxia is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding City Development Environment 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 City Development 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 City Development Environment 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 City Development i.e., City Development and Huaxia Fund go up and down completely randomly.
Pair Corralation between City Development and Huaxia Fund
Assuming the 90 days trading horizon City Development Environment is expected to generate 2.03 times more return on investment than Huaxia Fund. However, City Development is 2.03 times more volatile than Huaxia Fund Management. It trades about 0.03 of its potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.05 per unit of risk. If you would invest 1,024 in City Development Environment on October 29, 2024 and sell it today you would earn a total of 245.00 from holding City Development Environment or generate 23.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Development Environment vs. Huaxia Fund Management
Performance |
| Timeline |
| City Development Env |
| Huaxia Fund Management |
City Development and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Development and Huaxia Fund
The main advantage of trading using opposite City Development and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Development 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.| City Development vs. China Aluminum International | City Development vs. Zhejiang Yongjin Metal | City Development vs. AVIC Fund Management | City Development vs. Cicc Fund Management |
| Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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