Correlation Between Huaxia Fund and Hengli Industrial
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By analyzing existing cross correlation between Huaxia Fund Management and Hengli Industrial Development, you can compare the effects of market volatilities on Huaxia Fund and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Hengli Industrial.
Diversification Opportunities for Huaxia Fund and Hengli Industrial
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huaxia and Hengli is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Hengli Industrial go up and down completely randomly.
Pair Corralation between Huaxia Fund and Hengli Industrial
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.52 times more return on investment than Hengli Industrial. However, Huaxia Fund Management is 1.92 times less risky than Hengli Industrial. It trades about 0.1 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.04 per unit of risk. If you would invest 308.00 in Huaxia Fund Management on November 27, 2024 and sell it today you would earn a total of 7.00 from holding Huaxia Fund Management or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Hengli Industrial Development
Performance |
| Timeline |
| Huaxia Fund Management |
| Hengli Industrial |
Huaxia Fund and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Hengli Industrial
The main advantage of trading using opposite Huaxia Fund and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Huaxia Fund vs. Simei Media Co | Huaxia Fund vs. Wasu Media Holding | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. Postal Savings Bank |
| Hengli Industrial vs. Vohringer Home Technology | Hengli Industrial vs. Mengtian Home Group | Hengli Industrial vs. A Zenith Home Furnishings | Hengli Industrial vs. Hubei Forbon Technology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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