Correlation Between Shanghai Yaoji and Huaxia Fund
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Huaxia Fund Management, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Huaxia Fund.
Diversification Opportunities for Shanghai Yaoji and Huaxia Fund
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Huaxia is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing 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 Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Huaxia Fund go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Huaxia Fund
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to under-perform the Huaxia Fund. In addition to that, Shanghai Yaoji is 3.32 times more volatile than Huaxia Fund Management. It trades about -0.03 of its total potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.08 per unit of volatility. If you would invest 230.00 in Huaxia Fund Management on October 12, 2024 and sell it today you would earn a total of 76.00 from holding Huaxia Fund Management or generate 33.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Huaxia Fund Management
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Huaxia Fund Management |
Shanghai Yaoji and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Huaxia Fund
The main advantage of trading using opposite Shanghai Yaoji and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.| Shanghai Yaoji vs. Anhui Jinhe Industrial | Shanghai Yaoji vs. Pengxin International Mining | Shanghai Yaoji vs. Jilin Chemical Fibre | Shanghai Yaoji vs. Suzhou Industrial Park |
| Huaxia Fund vs. Bank of Suzhou | Huaxia Fund vs. Shenwu Energy Saving | Huaxia Fund vs. Qilu Bank Co | Huaxia Fund vs. Shaanxi Construction Machinery |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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