Correlation Between Huaxia Fund and China Asset
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By analyzing existing cross correlation between Huaxia Fund Management and China Asset Management, you can compare the effects of market volatilities on Huaxia Fund and China Asset 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 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and China Asset.
Diversification Opportunities for Huaxia Fund and China Asset
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huaxia and China is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and China Asset go up and down completely randomly.
Pair Corralation between Huaxia Fund and China Asset
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 1.55 times less return on investment than China Asset. In addition to that, Huaxia Fund is 1.15 times more volatile than China Asset Management. It trades about 0.05 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.09 per unit of volatility. If you would invest 276.00 in China Asset Management on October 26, 2024 and sell it today you would earn a total of 115.00 from holding China Asset Management or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. China Asset Management
Performance |
| Timeline |
| Huaxia Fund Management |
| China Asset Management |
Huaxia Fund and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and China Asset
The main advantage of trading using opposite Huaxia Fund and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, China Asset 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 Asset will offset losses from the drop in China Asset'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 |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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