Correlation Between Huaxia Fund and China World
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By analyzing existing cross correlation between Huaxia Fund Management and China World Trade, you can compare the effects of market volatilities on Huaxia Fund and China World 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 World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and China World.
Diversification Opportunities for Huaxia Fund and China World
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huaxia and China is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and China World go up and down completely randomly.
Pair Corralation between Huaxia Fund and China World
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 1.02 times more return on investment than China World. However, Huaxia Fund is 1.02 times more volatile than China World Trade. It trades about 0.3 of its potential returns per unit of risk. China World Trade is currently generating about -0.19 per unit of risk. If you would invest 288.00 in Huaxia Fund Management on October 16, 2024 and sell it today you would earn a total of 20.00 from holding Huaxia Fund Management or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. China World Trade
Performance |
| Timeline |
| Huaxia Fund Management |
| China World Trade |
Huaxia Fund and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and China World
The main advantage of trading using opposite Huaxia Fund and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, China World 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 World will offset losses from the drop in China World's long position.| Huaxia Fund vs. Chengdu Spaceon Electronics | Huaxia Fund vs. Uroica Mining Safety | Huaxia Fund vs. Shenzhen Silver Basis | Huaxia Fund vs. Tianjin Silvery Dragon |
| China World vs. Qilu Bank Co | China World vs. Financial Street Holdings | China World vs. Harvest Fund Management | China World vs. Huaxia Fund 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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