Correlation Between Huaxia Fund and Guangzhou Jointas
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By analyzing existing cross correlation between Huaxia Fund Management and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Huaxia Fund and Guangzhou Jointas 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 Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Guangzhou Jointas.
Diversification Opportunities for Huaxia Fund and Guangzhou Jointas
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huaxia and Guangzhou is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Huaxia Fund and Guangzhou Jointas
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.48 times more return on investment than Guangzhou Jointas. However, Huaxia Fund Management is 2.07 times less risky than Guangzhou Jointas. It trades about 0.36 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about -0.31 per unit of risk. If you would invest 275.00 in Huaxia Fund Management on October 14, 2024 and sell it today you would earn a total of 32.00 from holding Huaxia Fund Management or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Huaxia Fund Management |
| Guangzhou Jointas |
Huaxia Fund and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Guangzhou Jointas
The main advantage of trading using opposite Huaxia Fund and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Guangzhou Jointas 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 Jointas will offset losses from the drop in Guangzhou Jointas' long position.| Huaxia Fund vs. Postal Savings Bank | Huaxia Fund vs. China Asset Management | Huaxia Fund vs. Zhejiang Construction Investment | Huaxia Fund vs. Keeson Technology Corp |
| Guangzhou Jointas vs. HanS Laser Tech | Guangzhou Jointas vs. Huaxia Fund Management | Guangzhou Jointas vs. Linewell Software Co | Guangzhou Jointas vs. Digiwin Software 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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