Correlation Between Huaxia Fund and Guangdong Marubi
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By analyzing existing cross correlation between Huaxia Fund Management and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Huaxia Fund and Guangdong Marubi 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 Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Guangdong Marubi.
Diversification Opportunities for Huaxia Fund and Guangdong Marubi
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaxia and Guangdong is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Huaxia Fund and Guangdong Marubi
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.4 times more return on investment than Guangdong Marubi. However, Huaxia Fund Management is 2.53 times less risky than Guangdong Marubi. It trades about 0.05 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 250.00 in Huaxia Fund Management on October 30, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Huaxia Fund Management |
| Guangdong Marubi Bio |
Huaxia Fund and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Guangdong Marubi
The main advantage of trading using opposite Huaxia Fund and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Guangdong Marubi 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 Marubi will offset losses from the drop in Guangdong Marubi's long position.| Huaxia Fund vs. Qingdao Foods Co | Huaxia Fund vs. Anhui Gujing Distillery | Huaxia Fund vs. Sanquan Food Co | Huaxia Fund vs. Tonghua Grape Wine |
| Guangdong Marubi vs. BrightGene Bio Medical | Guangdong Marubi vs. Beijing Kingsoft Office | Guangdong Marubi vs. Chison Medical Technologies | Guangdong Marubi vs. Allmed Medical Products |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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