Correlation Between China Resources and Huaxia Fund
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By analyzing existing cross correlation between China Resources Boya and Huaxia Fund Management, you can compare the effects of market volatilities on China Resources 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 China Resources with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and Huaxia Fund.
Diversification Opportunities for China Resources and Huaxia Fund
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Huaxia is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Boya 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 China Resources 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 China Resources Boya 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 China Resources i.e., China Resources and Huaxia Fund go up and down completely randomly.
Pair Corralation between China Resources and Huaxia Fund
Assuming the 90 days trading horizon China Resources Boya is expected to under-perform the Huaxia Fund. But the stock apears to be less risky and, when comparing its historical volatility, China Resources Boya is 1.14 times less risky than Huaxia Fund. The stock trades about -0.14 of its potential returns per unit of risk. The Huaxia Fund Management is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 299.00 in Huaxia Fund Management on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Huaxia Fund Management or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Resources Boya vs. Huaxia Fund Management
Performance |
| Timeline |
| China Resources Boya |
| Huaxia Fund Management |
China Resources and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and Huaxia Fund
The main advantage of trading using opposite China Resources and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources 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.| China Resources vs. Guangdong Marubi Biotechnology | China Resources vs. HeNan Splendor Science | China Resources vs. Shanghai Rightongene Biotechnology | China Resources vs. Industrial Bank Co |
| Huaxia Fund vs. Fuzhou Rockchip Electronics | Huaxia Fund vs. Tonghua Grape Wine | Huaxia Fund vs. Nantong Haixing Electronics | Huaxia Fund vs. Cabio Biotech Wuhan |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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