Correlation Between Huaxia Fund and Advanced Technology
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By analyzing existing cross correlation between Huaxia Fund Management and Advanced Technology Materials, you can compare the effects of market volatilities on Huaxia Fund and Advanced Technology 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 Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Advanced Technology.
Diversification Opportunities for Huaxia Fund and Advanced Technology
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huaxia and Advanced is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology 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 Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Advanced Technology go up and down completely randomly.
Pair Corralation between Huaxia Fund and Advanced Technology
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 2.82 times less return on investment than Advanced Technology. But when comparing it to its historical volatility, Huaxia Fund Management is 2.74 times less risky than Advanced Technology. It trades about 0.11 of its potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 829.00 in Advanced Technology Materials on November 3, 2024 and sell it today you would earn a total of 323.00 from holding Advanced Technology Materials or generate 38.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Advanced Technology Materials
Performance |
| Timeline |
| Huaxia Fund Management |
| Advanced Technology |
Huaxia Fund and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Advanced Technology
The main advantage of trading using opposite Huaxia Fund and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology'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 |
| Advanced Technology vs. Shuhua Sports Co | Advanced Technology vs. Yunnan Jianzhijia Health Chain | Advanced Technology vs. PKU HealthCare Corp | Advanced Technology vs. Lander Sports Development |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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