Correlation Between Hangzhou Weiguang and China Fund
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and China Fund Management, you can compare the effects of market volatilities on Hangzhou Weiguang and China 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 Hangzhou Weiguang with a short position of China Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and China Fund.
Diversification Opportunities for Hangzhou Weiguang and China Fund
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and China is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and China Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fund Management and Hangzhou Weiguang 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 Hangzhou Weiguang Electronic are associated (or correlated) with China Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fund Management has no effect on the direction of Hangzhou Weiguang i.e., Hangzhou Weiguang and China Fund go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and China Fund
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to generate 3.42 times more return on investment than China Fund. However, Hangzhou Weiguang is 3.42 times more volatile than China Fund Management. It trades about 0.23 of its potential returns per unit of risk. China Fund Management is currently generating about 0.26 per unit of risk. If you would invest 2,363 in Hangzhou Weiguang Electronic on November 27, 2024 and sell it today you would earn a total of 1,010 from holding Hangzhou Weiguang Electronic or generate 42.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. China Fund Management
Performance |
| Timeline |
| Hangzhou Weiguang |
| China Fund Management |
Hangzhou Weiguang and China Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and China Fund
The main advantage of trading using opposite Hangzhou Weiguang and China Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang position performs unexpectedly, China 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 China Fund will offset losses from the drop in China Fund's long position.| Hangzhou Weiguang vs. Jinhui Mining Co | Hangzhou Weiguang vs. Chenzhou Jingui Silver | Hangzhou Weiguang vs. Guangdong Silvere Sci | Hangzhou Weiguang vs. Zijin Mining Group |
| China Fund vs. Winall Hi tech | China Fund vs. Guangzhou Zhujiang Brewery | China Fund vs. Ningbo Daye Garden | China Fund vs. Masterwork 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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