Correlation Between Huaxia Fund and Guangdong Liantai
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By analyzing existing cross correlation between Huaxia Fund Management and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Huaxia Fund and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Guangdong Liantai.
Diversification Opportunities for Huaxia Fund and Guangdong Liantai
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huaxia and Guangdong is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Huaxia Fund and Guangdong Liantai
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.49 times more return on investment than Guangdong Liantai. However, Huaxia Fund Management is 2.04 times less risky than Guangdong Liantai. It trades about 0.05 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.03 per unit of risk. If you would invest 250.00 in Huaxia Fund Management on October 29, 2024 and sell it today you would earn a total of 58.00 from holding Huaxia Fund Management or generate 23.2% 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. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Huaxia Fund Management |
| Guangdong Liantai |
Huaxia Fund and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Guangdong Liantai
The main advantage of trading using opposite Huaxia Fund and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai'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 |
| Guangdong Liantai vs. Jiangxi Lianchuang Opto electronic | Guangdong Liantai vs. Shenzhen Topway Video | Guangdong Liantai vs. Leyard Optoelectronic | Guangdong Liantai vs. Cicc Fund Management |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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