Correlation Between Huaxia Fund and Levima Advanced
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By analyzing existing cross correlation between Huaxia Fund Management and Levima Advanced Materials, you can compare the effects of market volatilities on Huaxia Fund and Levima Advanced 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 Levima Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Levima Advanced.
Diversification Opportunities for Huaxia Fund and Levima Advanced
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaxia and Levima is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Levima Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levima Advanced Materials 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 Levima Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Levima Advanced Materials has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Levima Advanced go up and down completely randomly.
Pair Corralation between Huaxia Fund and Levima Advanced
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.37 times more return on investment than Levima Advanced. However, Huaxia Fund Management is 2.73 times less risky than Levima Advanced. It trades about 0.07 of its potential returns per unit of risk. Levima Advanced Materials is currently generating about 0.01 per unit of risk. If you would invest 252.00 in Huaxia Fund Management on August 25, 2024 and sell it today you would earn a total of 4.00 from holding Huaxia Fund Management or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Levima Advanced Materials
Performance |
| Timeline |
| Huaxia Fund Management |
| Levima Advanced Materials |
Huaxia Fund and Levima Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Levima Advanced
The main advantage of trading using opposite Huaxia Fund and Levima Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Levima Advanced 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 Levima Advanced will offset losses from the drop in Levima Advanced'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 |
| Levima Advanced vs. Zijin Mining Group | Levima Advanced vs. Wanhua Chemical Group | Levima Advanced vs. Baoshan Iron Steel | Levima Advanced vs. Shandong Gold Mining |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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