Correlation Between Huaxia Fund and Road Environment
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By analyzing existing cross correlation between Huaxia Fund Management and Road Environment Technology, you can compare the effects of market volatilities on Huaxia Fund and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Road Environment.
Diversification Opportunities for Huaxia Fund and Road Environment
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Road is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Road Environment go up and down completely randomly.
Pair Corralation between Huaxia Fund and Road Environment
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.37 times more return on investment than Road Environment. However, Huaxia Fund Management is 2.74 times less risky than Road Environment. It trades about 0.04 of its potential returns per unit of risk. Road Environment Technology is currently generating about -0.09 per unit of risk. If you would invest 229.00 in Huaxia Fund Management on August 25, 2024 and sell it today you would earn a total of 27.00 from holding Huaxia Fund Management or generate 11.79% 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. Road Environment Technology
Performance |
| Timeline |
| Huaxia Fund Management |
| Road Environment Tec |
Huaxia Fund and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Road Environment
The main advantage of trading using opposite Huaxia Fund and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment'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 |
| Road Environment vs. Cambricon Technologies Corp | Road Environment vs. Loongson Technology Corp | Road Environment vs. Chongqing Road Bridge | Road Environment vs. Shenzhen Fortune Trend |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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