Correlation Between China Fund and Hangzhou Huawang
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By analyzing existing cross correlation between China Fund Management and Hangzhou Huawang New, you can compare the effects of market volatilities on China Fund and Hangzhou Huawang 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 Fund with a short position of Hangzhou Huawang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fund and Hangzhou Huawang.
Diversification Opportunities for China Fund and Hangzhou Huawang
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Hangzhou is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Fund Management and Hangzhou Huawang New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Huawang New and China Fund 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 Fund Management are associated (or correlated) with Hangzhou Huawang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Huawang New has no effect on the direction of China Fund i.e., China Fund and Hangzhou Huawang go up and down completely randomly.
Pair Corralation between China Fund and Hangzhou Huawang
Assuming the 90 days trading horizon China Fund Management is expected to generate 0.31 times more return on investment than Hangzhou Huawang. However, China Fund Management is 3.19 times less risky than Hangzhou Huawang. It trades about 0.06 of its potential returns per unit of risk. Hangzhou Huawang New is currently generating about 0.01 per unit of risk. If you would invest 872.00 in China Fund Management on August 29, 2024 and sell it today you would earn a total of 135.00 from holding China Fund Management or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fund Management vs. Hangzhou Huawang New
Performance |
| Timeline |
| China Fund Management |
| Hangzhou Huawang New |
China Fund and Hangzhou Huawang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fund and Hangzhou Huawang
The main advantage of trading using opposite China Fund and Hangzhou Huawang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fund position performs unexpectedly, Hangzhou Huawang 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 Hangzhou Huawang will offset losses from the drop in Hangzhou Huawang's long position.| China Fund vs. Industrial and Commercial | China Fund vs. Kweichow Moutai Co | China Fund vs. Agricultural Bank of | China Fund vs. China Mobile Limited |
| Hangzhou Huawang vs. Zijin Mining Group | Hangzhou Huawang vs. Wanhua Chemical Group | Hangzhou Huawang vs. Baoshan Iron Steel | Hangzhou Huawang vs. Shandong Gold Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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