Correlation Between Huaxia Fund and Huatai Securities
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By analyzing existing cross correlation between Huaxia Fund Management and Huatai Securities Co, you can compare the effects of market volatilities on Huaxia Fund and Huatai Securities 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 Huatai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Huatai Securities.
Diversification Opportunities for Huaxia Fund and Huatai Securities
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Huatai is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Huatai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatai Securities 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 Huatai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatai Securities has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Huatai Securities go up and down completely randomly.
Pair Corralation between Huaxia Fund and Huatai Securities
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.64 times more return on investment than Huatai Securities. However, Huaxia Fund Management is 1.55 times less risky than Huatai Securities. It trades about 0.26 of its potential returns per unit of risk. Huatai Securities Co is currently generating about -0.17 per unit of risk. If you would invest 260.00 in Huaxia Fund Management on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Huaxia Fund Management or generate 6.15% 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. Huatai Securities Co
Performance |
| Timeline |
| Huaxia Fund Management |
| Huatai Securities |
Huaxia Fund and Huatai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Huatai Securities
The main advantage of trading using opposite Huaxia Fund and Huatai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Huatai Securities 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 Huatai Securities will offset losses from the drop in Huatai Securities' long position.| Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited | Huaxia Fund vs. China Construction Bank |
| Huatai Securities vs. Shanghai Yanpu Metal | Huatai Securities vs. Huaxia Fund Management | Huatai Securities vs. Shandong Mining Machinery | Huatai Securities vs. Dalian Thermal Power |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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