Correlation Between Huaxia Fund and Shanghai Broadband
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By analyzing existing cross correlation between Huaxia Fund Management and Shanghai Broadband Technology, you can compare the effects of market volatilities on Huaxia Fund and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Shanghai Broadband.
Diversification Opportunities for Huaxia Fund and Shanghai Broadband
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Shanghai is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Huaxia Fund and Shanghai Broadband
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 1.22 times less return on investment than Shanghai Broadband. But when comparing it to its historical volatility, Huaxia Fund Management is 2.63 times less risky than Shanghai Broadband. It trades about 0.04 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Shanghai Broadband Technology on August 25, 2024 and sell it today you would earn a total of 20.00 from holding Shanghai Broadband Technology or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Huaxia Fund Management |
| Shanghai Broadband |
Huaxia Fund and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Shanghai Broadband
The main advantage of trading using opposite Huaxia Fund and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband'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 |
| Shanghai Broadband vs. Jiangxi Hengda Hi Tech | Shanghai Broadband vs. Sichuan Jinshi Technology | Shanghai Broadband vs. China Publishing Media | Shanghai Broadband vs. Sportsoul Co Ltd |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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