Correlation Between Huaxia Fund and Hangzhou Gaoxin
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By analyzing existing cross correlation between Huaxia Fund Management and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Huaxia Fund and Hangzhou Gaoxin 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 Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Hangzhou Gaoxin.
Diversification Opportunities for Huaxia Fund and Hangzhou Gaoxin
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaxia and Hangzhou is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Huaxia Fund and Hangzhou Gaoxin
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 1.39 times less return on investment than Hangzhou Gaoxin. But when comparing it to its historical volatility, Huaxia Fund Management is 3.33 times less risky than Hangzhou Gaoxin. It trades about 0.21 of its potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,007 in Hangzhou Gaoxin Rubber on August 29, 2024 and sell it today you would earn a total of 53.00 from holding Hangzhou Gaoxin Rubber or generate 5.26% 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. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Huaxia Fund Management |
| Hangzhou Gaoxin Rubber |
Huaxia Fund and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Hangzhou Gaoxin
The main advantage of trading using opposite Huaxia Fund and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Hangzhou Gaoxin 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 Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Huaxia Fund vs. Jonjee Hi tech Industrial | Huaxia Fund vs. Guangzhou Jinyi Media | Huaxia Fund vs. Southern PublishingMedia Co | Huaxia Fund vs. Duzhe Publishing Media |
| Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Wanhua Chemical Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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