Correlation Between Huaxia Fund and Gotion High
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By analyzing existing cross correlation between Huaxia Fund Management and Gotion High tech, you can compare the effects of market volatilities on Huaxia Fund and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Gotion High.
Diversification Opportunities for Huaxia Fund and Gotion High
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Gotion is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Gotion High go up and down completely randomly.
Pair Corralation between Huaxia Fund and Gotion High
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.38 times more return on investment than Gotion High. However, Huaxia Fund Management is 2.65 times less risky than Gotion High. It trades about 0.08 of its potential returns per unit of risk. Gotion High tech is currently generating about 0.02 per unit of risk. If you would invest 212.00 in Huaxia Fund Management on September 4, 2024 and sell it today you would earn a total of 46.00 from holding Huaxia Fund Management or generate 21.7% 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. Gotion High tech
Performance |
| Timeline |
| Huaxia Fund Management |
| Gotion High tech |
Huaxia Fund and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Gotion High
The main advantage of trading using opposite Huaxia Fund and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High'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 |
| Gotion High vs. Xizi Clean Energy | Gotion High vs. Shandong Polymer Biochemicals | Gotion High vs. Shandong Huifa Foodstuff | Gotion High vs. Shaanxi Meineng Clean |
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 CEOs Directory module to screen CEOs from public companies around the world.
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