Correlation Between Huaxia Fund and Beijing Wantai
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By analyzing existing cross correlation between Huaxia Fund Management and Beijing Wantai Biological, you can compare the effects of market volatilities on Huaxia Fund and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Beijing Wantai.
Diversification Opportunities for Huaxia Fund and Beijing Wantai
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Beijing is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Beijing Wantai go up and down completely randomly.
Pair Corralation between Huaxia Fund and Beijing Wantai
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.37 times more return on investment than Beijing Wantai. However, Huaxia Fund Management is 2.68 times less risky than Beijing Wantai. It trades about 0.15 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.03 per unit of risk. If you would invest 223.00 in Huaxia Fund Management on November 5, 2024 and sell it today you would earn a total of 85.00 from holding Huaxia Fund Management or generate 38.12% 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. Beijing Wantai Biological
Performance |
| Timeline |
| Huaxia Fund Management |
| Beijing Wantai Biological |
Huaxia Fund and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Beijing Wantai
The main advantage of trading using opposite Huaxia Fund and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Huaxia Fund vs. Jiangsu Financial Leasing | Huaxia Fund vs. Guosheng Financial Holding | Huaxia Fund vs. Giantec Semiconductor Corp | Huaxia Fund vs. Lecron Energy Saving |
| Beijing Wantai vs. Emdoor Information Co | Beijing Wantai vs. XiaMen HongXin Electron tech | Beijing Wantai vs. Dawning Information Industry | Beijing Wantai vs. Jiujiang Shanshui Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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