Correlation Between Huaxia Fund and New Hope
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By analyzing existing cross correlation between Huaxia Fund Management and New Hope Dairy, you can compare the effects of market volatilities on Huaxia Fund and New Hope 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 New Hope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and New Hope.
Diversification Opportunities for Huaxia Fund and New Hope
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huaxia and New is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and New Hope Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Hope Dairy 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 New Hope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Hope Dairy has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and New Hope go up and down completely randomly.
Pair Corralation between Huaxia Fund and New Hope
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.42 times more return on investment than New Hope. However, Huaxia Fund Management is 2.4 times less risky than New Hope. It trades about 0.34 of its potential returns per unit of risk. New Hope Dairy is currently generating about 0.1 per unit of risk. If you would invest 257.00 in Huaxia Fund Management on October 30, 2024 and sell it today you would earn a total of 51.00 from holding Huaxia Fund Management or generate 19.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. New Hope Dairy
Performance |
| Timeline |
| Huaxia Fund Management |
| New Hope Dairy |
Huaxia Fund and New Hope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and New Hope
The main advantage of trading using opposite Huaxia Fund and New Hope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, New Hope 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 New Hope will offset losses from the drop in New Hope's long position.| Huaxia Fund vs. Qingdao Foods Co | Huaxia Fund vs. Anhui Gujing Distillery | Huaxia Fund vs. Sanquan Food Co | Huaxia Fund vs. Tonghua Grape Wine |
| New Hope vs. Lier Chemical Co | New Hope vs. Maoming Petro Chemical Shihua | New Hope vs. Hengli Petrochemical Co | New Hope vs. Liuzhou Chemical Industry |
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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