Correlation Between Huaxia Fund and Guangzhou Dongfang
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By analyzing existing cross correlation between Huaxia Fund Management and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on Huaxia Fund and Guangzhou Dongfang 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 Huaxia Fund with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Guangzhou Dongfang.
Diversification Opportunities for Huaxia Fund and Guangzhou Dongfang
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huaxia and Guangzhou is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and Huaxia 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 Huaxia Fund Management are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between Huaxia Fund and Guangzhou Dongfang
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.49 times more return on investment than Guangzhou Dongfang. However, Huaxia Fund Management is 2.03 times less risky than Guangzhou Dongfang. It trades about 0.33 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about -0.16 per unit of risk. If you would invest 270.00 in Huaxia Fund Management on October 11, 2024 and sell it today you would earn a total of 30.00 from holding Huaxia Fund Management or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| Huaxia Fund Management |
| Guangzhou Dongfang Hotel |
Huaxia Fund and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Guangzhou Dongfang
The main advantage of trading using opposite Huaxia Fund and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| Huaxia Fund vs. Ye Chiu Metal | Huaxia Fund vs. Shenyang Huitian Thermal | Huaxia Fund vs. Shenzhen Bioeasy Biotechnology | Huaxia Fund vs. Chengtun Mining Group |
| Guangzhou Dongfang vs. Shaanxi Meineng Clean | Guangzhou Dongfang vs. Rongcheer Industrial Technology | Guangzhou Dongfang vs. Western Metal Materials | Guangzhou Dongfang vs. Minmetals Capital Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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