Correlation Between Shenzhen Bioeasy and Huaxia Fund
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Huaxia Fund Management, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Shenzhen Bioeasy with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Huaxia Fund.
Diversification Opportunities for Shenzhen Bioeasy and Huaxia Fund
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Huaxia is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Huaxia Fund go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Huaxia Fund
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to under-perform the Huaxia Fund. In addition to that, Shenzhen Bioeasy is 3.69 times more volatile than Huaxia Fund Management. It trades about -0.02 of its total potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.05 per unit of volatility. If you would invest 246.00 in Huaxia Fund Management on October 11, 2024 and sell it today you would earn a total of 54.00 from holding Huaxia Fund Management or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Huaxia Fund Management
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Huaxia Fund Management |
Shenzhen Bioeasy and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Huaxia Fund
The main advantage of trading using opposite Shenzhen Bioeasy and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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.| Shenzhen Bioeasy vs. GUOMAI Culture Media | Shenzhen Bioeasy vs. China Publishing Media | Shenzhen Bioeasy vs. Guangzhou Jinyi Media | Shenzhen Bioeasy vs. JiShi Media Co |
| Huaxia Fund vs. Ye Chiu Metal | Huaxia Fund vs. Shenyang Huitian Thermal | Huaxia Fund vs. Shenzhen Bioeasy Biotechnology | Huaxia Fund vs. Chengtun Mining Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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