Correlation Between Huaxia Fund and Shandong Mining
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By analyzing existing cross correlation between Huaxia Fund Management and Shandong Mining Machinery, you can compare the effects of market volatilities on Huaxia Fund and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Shandong Mining.
Diversification Opportunities for Huaxia Fund and Shandong Mining
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huaxia and Shandong is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Shandong Mining go up and down completely randomly.
Pair Corralation between Huaxia Fund and Shandong Mining
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.34 times more return on investment than Shandong Mining. However, Huaxia Fund Management is 2.92 times less risky than Shandong Mining. It trades about 0.44 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about -0.55 per unit of risk. If you would invest 262.00 in Huaxia Fund Management on October 7, 2024 and sell it today you would earn a total of 40.00 from holding Huaxia Fund Management or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Shandong Mining Machinery
Performance |
| Timeline |
| Huaxia Fund Management |
| Shandong Mining Machinery |
Huaxia Fund and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Shandong Mining
The main advantage of trading using opposite Huaxia Fund and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining'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 |
| Shandong Mining vs. BeiGene | Shandong Mining vs. G bits Network Technology | Shandong Mining vs. China Mobile Limited | Shandong Mining vs. Gansu Jiu Steel |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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