Correlation Between Huaxia Fund and City Development
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By analyzing existing cross correlation between Huaxia Fund Management and City Development Environment, you can compare the effects of market volatilities on Huaxia Fund and City Development 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 City Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and City Development.
Diversification Opportunities for Huaxia Fund and City Development
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and City is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and City Development Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Development Env 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 City Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Development Env has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and City Development go up and down completely randomly.
Pair Corralation between Huaxia Fund and City Development
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 1.35 times less return on investment than City Development. But when comparing it to its historical volatility, Huaxia Fund Management is 2.03 times less risky than City Development. It trades about 0.05 of its potential returns per unit of risk. City Development Environment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,024 in City Development Environment on October 29, 2024 and sell it today you would earn a total of 245.00 from holding City Development Environment or generate 23.93% 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. City Development Environment
Performance |
| Timeline |
| Huaxia Fund Management |
| City Development Env |
Huaxia Fund and City Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and City Development
The main advantage of trading using opposite Huaxia Fund and City Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, City Development 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 City Development will offset losses from the drop in City Development'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 |
| City Development vs. China Aluminum International | City Development vs. Zhejiang Yongjin Metal | City Development vs. AVIC Fund Management | City Development vs. Cicc Fund Management |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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