Correlation Between Huaxia Fund and Beijing New
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By analyzing existing cross correlation between Huaxia Fund Management and Beijing New Building, you can compare the effects of market volatilities on Huaxia Fund and Beijing New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Beijing New.
Diversification Opportunities for Huaxia Fund and Beijing New
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Beijing is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Beijing New go up and down completely randomly.
Pair Corralation between Huaxia Fund and Beijing New
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 1.75 times less return on investment than Beijing New. But when comparing it to its historical volatility, Huaxia Fund Management is 2.11 times less risky than Beijing New. It trades about 0.04 of its potential returns per unit of risk. Beijing New Building is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,498 in Beijing New Building on September 12, 2024 and sell it today you would earn a total of 365.00 from holding Beijing New Building or generate 14.61% 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. Beijing New Building
Performance |
| Timeline |
| Huaxia Fund Management |
| Beijing New Building |
Huaxia Fund and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Beijing New
The main advantage of trading using opposite Huaxia Fund and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Beijing New 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 New will offset losses from the drop in Beijing New's long position.| Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited | Huaxia Fund vs. China Construction Bank |
| Beijing New vs. Huaxia Fund Management | Beijing New vs. Shaanxi Energy Investment | Beijing New vs. Nuode Investment Co | Beijing New vs. Hubei Geoway Investment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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