Correlation Between Huaxia Fund and Wenzhou Hongfeng
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By analyzing existing cross correlation between Huaxia Fund Management and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Huaxia Fund and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Wenzhou Hongfeng.
Diversification Opportunities for Huaxia Fund and Wenzhou Hongfeng
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huaxia and Wenzhou is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Huaxia Fund and Wenzhou Hongfeng
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 1.15 times less return on investment than Wenzhou Hongfeng. But when comparing it to its historical volatility, Huaxia Fund Management is 3.14 times less risky than Wenzhou Hongfeng. It trades about 0.05 of its potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 527.00 in Wenzhou Hongfeng Electrical on October 11, 2024 and sell it today you would earn a total of 12.00 from holding Wenzhou Hongfeng Electrical or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Huaxia Fund Management vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Huaxia Fund Management |
| Wenzhou Hongfeng Ele |
Huaxia Fund and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Wenzhou Hongfeng
The main advantage of trading using opposite Huaxia Fund and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| Huaxia Fund vs. Ye Chiu Metal | Huaxia Fund vs. Shenyang Huitian Thermal | Huaxia Fund vs. Shenzhen Bioeasy Biotechnology | Huaxia Fund vs. Chengtun Mining Group |
| Wenzhou Hongfeng vs. Bloomage Biotechnology Corp | Wenzhou Hongfeng vs. Wuhan Hvsen Biotechnology | Wenzhou Hongfeng vs. Huaxia Fund Management | Wenzhou Hongfeng vs. Guangdong Marubi Biotechnology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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