Correlation Between China Asset and Huasi Agricultural
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By analyzing existing cross correlation between China Asset Management and Huasi Agricultural Development, you can compare the effects of market volatilities on China Asset and Huasi Agricultural 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 Asset with a short position of Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Huasi Agricultural.
Diversification Opportunities for China Asset and Huasi Agricultural
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Huasi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural and China Asset 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 Asset Management are associated (or correlated) with Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of China Asset i.e., China Asset and Huasi Agricultural go up and down completely randomly.
Pair Corralation between China Asset and Huasi Agricultural
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.35 times more return on investment than Huasi Agricultural. However, China Asset Management is 2.86 times less risky than Huasi Agricultural. It trades about 0.39 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.01 per unit of risk. If you would invest 308.00 in China Asset Management on November 6, 2024 and sell it today you would earn a total of 88.00 from holding China Asset Management or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
China Asset Management vs. Huasi Agricultural Development
Performance |
| Timeline |
| China Asset Management |
| Huasi Agricultural |
China Asset and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Huasi Agricultural
The main advantage of trading using opposite China Asset and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| China Asset vs. Tinavi Medical Technologies | China Asset vs. Double Medical Technology | China Asset vs. Cicc Fund Management | China Asset vs. Eyebright Medical Technology |
| Huasi Agricultural vs. Kidswant Children Products | Huasi Agricultural vs. Sharetronic Data Technology | Huasi Agricultural vs. Postal Savings Bank | Huasi Agricultural vs. Lecron Energy Saving |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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