Correlation Between Huaxia Fund and Ligao Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huaxia Fund Management and Ligao Foods CoLtd, you can compare the effects of market volatilities on Huaxia Fund and Ligao Foods 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 Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Ligao Foods.
Diversification Opportunities for Huaxia Fund and Ligao Foods
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Huaxia and Ligao is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Ligao Foods CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligao Foods CoLtd 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 Ligao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligao Foods CoLtd has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Ligao Foods go up and down completely randomly.
Pair Corralation between Huaxia Fund and Ligao Foods
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.33 times more return on investment than Ligao Foods. However, Huaxia Fund Management is 3.04 times less risky than Ligao Foods. It trades about 0.05 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.05 per unit of risk. If you would invest 247.00 in Huaxia Fund Management on October 14, 2024 and sell it today you would earn a total of 60.00 from holding Huaxia Fund Management or generate 24.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Huaxia Fund Management |
| Ligao Foods CoLtd |
Huaxia Fund and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Ligao Foods
The main advantage of trading using opposite Huaxia Fund and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Ligao Foods 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 Ligao Foods will offset losses from the drop in Ligao Foods' 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 |
| Ligao Foods vs. Longxing Chemical Stock | Ligao Foods vs. Huaxia Fund Management | Ligao Foods vs. Guangzhou Jointas Chemical | Ligao Foods vs. JCHX Mining Management |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |