Correlation Between Huaxia Fund and Tibet Huayu
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By analyzing existing cross correlation between Huaxia Fund Management and Tibet Huayu Mining, you can compare the effects of market volatilities on Huaxia Fund and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Tibet Huayu.
Diversification Opportunities for Huaxia Fund and Tibet Huayu
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Tibet is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Tibet Huayu go up and down completely randomly.
Pair Corralation between Huaxia Fund and Tibet Huayu
Assuming the 90 days trading horizon Huaxia Fund Management is expected to under-perform the Tibet Huayu. But the stock apears to be less risky and, when comparing its historical volatility, Huaxia Fund Management is 4.44 times less risky than Tibet Huayu. The stock trades about -0.08 of its potential returns per unit of risk. The Tibet Huayu Mining is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,348 in Tibet Huayu Mining on September 3, 2024 and sell it today you would earn a total of 91.00 from holding Tibet Huayu Mining or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Tibet Huayu Mining
Performance |
| Timeline |
| Huaxia Fund Management |
| Tibet Huayu Mining |
Huaxia Fund and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Tibet Huayu
The main advantage of trading using opposite Huaxia Fund and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu'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 |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Rongsheng Petrochemical Co | Tibet Huayu vs. Hoshine Silicon Ind |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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