Correlation Between Huaxia Fund and China Resources
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By analyzing existing cross correlation between Huaxia Fund Management and China Resources Boya, you can compare the effects of market volatilities on Huaxia Fund and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and China Resources.
Diversification Opportunities for Huaxia Fund and China Resources
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaxia and China is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and China Resources go up and down completely randomly.
Pair Corralation between Huaxia Fund and China Resources
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 1.14 times more return on investment than China Resources. However, Huaxia Fund is 1.14 times more volatile than China Resources Boya. It trades about 0.26 of its potential returns per unit of risk. China Resources Boya is currently generating about -0.26 per unit of risk. If you would invest 288.00 in Huaxia Fund Management on October 23, 2024 and sell it today you would earn a total of 17.00 from holding Huaxia Fund Management or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Huaxia Fund Management vs. China Resources Boya
Performance |
| Timeline |
| Huaxia Fund Management |
| China Resources Boya |
Huaxia Fund and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and China Resources
The main advantage of trading using opposite Huaxia Fund and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' 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 |
| China Resources vs. Huaxia Fund Management | China Resources vs. Western Metal Materials | China Resources vs. Cangzhou Mingzhu Plastic | China Resources vs. Kangxin New Materials |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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