Correlation Between Huaxia Fund and Zhongtong Guomai
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By analyzing existing cross correlation between Huaxia Fund Management and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Huaxia Fund and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Zhongtong Guomai.
Diversification Opportunities for Huaxia Fund and Zhongtong Guomai
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaxia and Zhongtong is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Huaxia Fund and Zhongtong Guomai
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 9.97 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, Huaxia Fund Management is 1.65 times less risky than Zhongtong Guomai. It trades about 0.09 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 717.00 in Zhongtong Guomai Communication on November 28, 2024 and sell it today you would earn a total of 182.00 from holding Zhongtong Guomai Communication or generate 25.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Huaxia Fund Management vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Huaxia Fund Management |
| Zhongtong Guomai Com |
Huaxia Fund and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Zhongtong Guomai
The main advantage of trading using opposite Huaxia Fund and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Huaxia Fund vs. Northking Information Technology | Huaxia Fund vs. INKON Life Technology | Huaxia Fund vs. Hubei Forbon Technology | Huaxia Fund vs. Xiangyang Automobile Bearing |
| Zhongtong Guomai vs. Cicc Fund Management | Zhongtong Guomai vs. Xiamen Insight Investment | Zhongtong Guomai vs. Hubei Geoway Investment | Zhongtong Guomai vs. Postal Savings Bank |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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