Correlation Between Huaxia Fund and Guangzhou Jinyi
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By analyzing existing cross correlation between Huaxia Fund Management and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Huaxia Fund and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Guangzhou Jinyi.
Diversification Opportunities for Huaxia Fund and Guangzhou Jinyi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huaxia and Guangzhou is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Huaxia Fund and Guangzhou Jinyi
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 2.85 times less return on investment than Guangzhou Jinyi. But when comparing it to its historical volatility, Huaxia Fund Management is 3.45 times less risky than Guangzhou Jinyi. It trades about 0.09 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 620.00 in Guangzhou Jinyi Media on September 26, 2024 and sell it today you would earn a total of 179.00 from holding Guangzhou Jinyi Media or generate 28.87% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| Huaxia Fund Management |
| Guangzhou Jinyi Media |
Huaxia Fund and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Guangzhou Jinyi
The main advantage of trading using opposite Huaxia Fund and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi'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 |
| Guangzhou Jinyi vs. Cultural Investment Holdings | Guangzhou Jinyi vs. Gome Telecom Equipment | Guangzhou Jinyi vs. Bus Online Co | Guangzhou Jinyi vs. Holitech Technology Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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