Correlation Between Huaxia Fund and Xinjiang Tianshun
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By analyzing existing cross correlation between Huaxia Fund Management and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Huaxia Fund and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Xinjiang Tianshun.
Diversification Opportunities for Huaxia Fund and Xinjiang Tianshun
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huaxia and Xinjiang is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Huaxia Fund and Xinjiang Tianshun
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.34 times more return on investment than Xinjiang Tianshun. However, Huaxia Fund Management is 2.92 times less risky than Xinjiang Tianshun. It trades about 0.02 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about -0.02 per unit of risk. If you would invest 261.00 in Huaxia Fund Management on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Huaxia Fund Management or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Huaxia Fund Management vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Huaxia Fund Management |
| Xinjiang Tianshun Supply |
Huaxia Fund and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Xinjiang Tianshun
The main advantage of trading using opposite Huaxia Fund and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Huaxia Fund vs. Dymatic Chemicals | Huaxia Fund vs. Vanfund Urban Investment | Huaxia Fund vs. Yangmei Chemical Co | Huaxia Fund vs. Hubei Geoway Investment |
| Xinjiang Tianshun vs. Jiangsu Yueda Investment | Xinjiang Tianshun vs. Sunny Loan Top | Xinjiang Tianshun vs. Shenzhen Centralcon Investment | Xinjiang Tianshun vs. Caihong Display Devices |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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