Correlation Between Huaxia Fund and Zotye Automobile
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By analyzing existing cross correlation between Huaxia Fund Management and Zotye Automobile Co, you can compare the effects of market volatilities on Huaxia Fund and Zotye Automobile 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 Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Zotye Automobile.
Diversification Opportunities for Huaxia Fund and Zotye Automobile
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Zotye is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile 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 Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Zotye Automobile go up and down completely randomly.
Pair Corralation between Huaxia Fund and Zotye Automobile
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 1.41 times less return on investment than Zotye Automobile. But when comparing it to its historical volatility, Huaxia Fund Management is 4.46 times less risky than Zotye Automobile. It trades about 0.29 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 248.00 in Zotye Automobile Co on September 5, 2024 and sell it today you would earn a total of 18.00 from holding Zotye Automobile Co or generate 7.26% 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. Zotye Automobile Co
Performance |
| Timeline |
| Huaxia Fund Management |
| Zotye Automobile |
Huaxia Fund and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Zotye Automobile
The main advantage of trading using opposite Huaxia Fund and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| Huaxia Fund vs. Northking Information Technology | Huaxia Fund vs. Dhc Software Co | Huaxia Fund vs. Tianshui Huatian Technology | Huaxia Fund vs. AVCON Information Tech |
| Zotye Automobile vs. Harvest Fund Management | Zotye Automobile vs. Innovative Medical Management | Zotye Automobile vs. Huaxia Fund Management | Zotye Automobile vs. AVIC 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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