Correlation Between Huaxia Fund and Beijing Yanjing
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By analyzing existing cross correlation between Huaxia Fund Management and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Huaxia Fund and Beijing Yanjing 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 Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Beijing Yanjing.
Diversification Opportunities for Huaxia Fund and Beijing Yanjing
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huaxia and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery 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 Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Huaxia Fund and Beijing Yanjing
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.7 times more return on investment than Beijing Yanjing. However, Huaxia Fund Management is 1.43 times less risky than Beijing Yanjing. It trades about 0.25 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.14 per unit of risk. If you would invest 288.00 in Huaxia Fund Management on October 22, 2024 and sell it today you would earn a total of 17.00 from holding Huaxia Fund Management or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Huaxia Fund Management vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Huaxia Fund Management |
| Beijing Yanjing Brewery |
Huaxia Fund and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Beijing Yanjing
The main advantage of trading using opposite Huaxia Fund and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Beijing Yanjing 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 Beijing Yanjing will offset losses from the drop in Beijing Yanjing's long position.| Huaxia Fund vs. Guizhou BroadcastingTV Info | Huaxia Fund vs. Montage Technology Co | Huaxia Fund vs. Xinjiang Beixin RoadBridge | Huaxia Fund vs. Sharetronic Data Technology |
| Beijing Yanjing vs. Shanghai Shibei Hi Tech | Beijing Yanjing vs. AUPU Home Style | Beijing Yanjing vs. Kuang Chi Technologies | Beijing Yanjing vs. Hunan Mendale Hometextile |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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