Correlation Between Hangzhou Gaoxin and Huaxia Fund
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Huaxia Fund Management, you can compare the effects of market volatilities on Hangzhou Gaoxin 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 Hangzhou Gaoxin with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Huaxia Fund.
Diversification Opportunities for Hangzhou Gaoxin and Huaxia Fund
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hangzhou and Huaxia is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin 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 Gaoxin Rubber 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 Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Huaxia Fund go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Huaxia Fund
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 3.47 times more return on investment than Huaxia Fund. However, Hangzhou Gaoxin is 3.47 times more volatile than Huaxia Fund Management. It trades about 0.02 of its potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.0 per unit of risk. If you would invest 1,034 in Hangzhou Gaoxin Rubber on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Hangzhou Gaoxin Rubber or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Huaxia Fund Management
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Huaxia Fund Management |
Hangzhou Gaoxin and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Huaxia Fund
The main advantage of trading using opposite Hangzhou Gaoxin and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin 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.| Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Wanhua Chemical Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin vs. Shandong Gold Mining |
| Huaxia Fund vs. Jonjee Hi tech Industrial | Huaxia Fund vs. Guangzhou Jinyi Media | Huaxia Fund vs. Southern PublishingMedia Co | Huaxia Fund vs. Duzhe Publishing Media |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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