Correlation Between Huaxia Fund and Industrial
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By analyzing existing cross correlation between Huaxia Fund Management and Industrial and Commercial, you can compare the effects of market volatilities on Huaxia Fund and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Industrial.
Diversification Opportunities for Huaxia Fund and Industrial
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huaxia and Industrial is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Industrial go up and down completely randomly.
Pair Corralation between Huaxia Fund and Industrial
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.7 times more return on investment than Industrial. However, Huaxia Fund Management is 1.42 times less risky than Industrial. It trades about 0.13 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.08 per unit of risk. If you would invest 205.00 in Huaxia Fund Management on August 29, 2024 and sell it today you would earn a total of 52.00 from holding Huaxia Fund Management or generate 25.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Industrial and Commercial
Performance |
| Timeline |
| Huaxia Fund Management |
| Industrial and Commercial |
Huaxia Fund and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Industrial
The main advantage of trading using opposite Huaxia Fund and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 |
| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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