Correlation Between Huaxia Fund and Changchun High
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By analyzing existing cross correlation between Huaxia Fund Management and Changchun High New, you can compare the effects of market volatilities on Huaxia Fund and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Changchun High.
Diversification Opportunities for Huaxia Fund and Changchun High
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaxia and Changchun is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Changchun High go up and down completely randomly.
Pair Corralation between Huaxia Fund and Changchun High
Assuming the 90 days trading horizon Huaxia Fund Management is expected to under-perform the Changchun High. But the stock apears to be less risky and, when comparing its historical volatility, Huaxia Fund Management is 3.9 times less risky than Changchun High. The stock trades about -0.08 of its potential returns per unit of risk. The Changchun High New is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 7,940 in Changchun High New on September 2, 2024 and sell it today you would earn a total of 2,782 from holding Changchun High New or generate 35.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Changchun High New
Performance |
| Timeline |
| Huaxia Fund Management |
| Changchun High New |
Huaxia Fund and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Changchun High
The main advantage of trading using opposite Huaxia Fund and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited |
| Changchun High vs. Xinjiang Tianrun Dairy | Changchun High vs. Eastern Air Logistics | Changchun High vs. Juewei Food Co | Changchun High vs. Zhengzhou Qianweiyangchu Food |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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