Correlation Between Huaxia Fund and Ningbo Thermal
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By analyzing existing cross correlation between Huaxia Fund Management and Ningbo Thermal Power, you can compare the effects of market volatilities on Huaxia Fund and Ningbo Thermal 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 Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Ningbo Thermal.
Diversification Opportunities for Huaxia Fund and Ningbo Thermal
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Huaxia and Ningbo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power 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 Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Ningbo Thermal go up and down completely randomly.
Pair Corralation between Huaxia Fund and Ningbo Thermal
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.49 times more return on investment than Ningbo Thermal. However, Huaxia Fund Management is 2.05 times less risky than Ningbo Thermal. It trades about 0.25 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about -0.33 per unit of risk. If you would invest 288.00 in Huaxia Fund Management on October 22, 2024 and sell it today you would earn a total of 17.00 from holding Huaxia Fund Management or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Huaxia Fund Management vs. Ningbo Thermal Power
Performance |
| Timeline |
| Huaxia Fund Management |
| Ningbo Thermal Power |
Huaxia Fund and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Ningbo Thermal
The main advantage of trading using opposite Huaxia Fund and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Ningbo Thermal 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 Ningbo Thermal will offset losses from the drop in Ningbo Thermal's long position.| Huaxia Fund vs. Guizhou BroadcastingTV Info | Huaxia Fund vs. Montage Technology Co | Huaxia Fund vs. Xinjiang Beixin RoadBridge | Huaxia Fund vs. Sharetronic Data Technology |
| Ningbo Thermal vs. Cicc Fund Management | Ningbo Thermal vs. Heilongjiang Transport Development | Ningbo Thermal vs. Shanghai Yanpu Metal | Ningbo Thermal vs. Xinjiang Sailing Information |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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