Correlation Between Huaxia Fund and IRay Technology
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By analyzing existing cross correlation between Huaxia Fund Management and iRay Technology Co, you can compare the effects of market volatilities on Huaxia Fund and IRay Technology 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 IRay Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and IRay Technology.
Diversification Opportunities for Huaxia Fund and IRay Technology
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and IRay is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and iRay Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iRay Technology 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 IRay Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iRay Technology has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and IRay Technology go up and down completely randomly.
Pair Corralation between Huaxia Fund and IRay Technology
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.29 times more return on investment than IRay Technology. However, Huaxia Fund Management is 3.4 times less risky than IRay Technology. It trades about 0.02 of its potential returns per unit of risk. iRay Technology Co is currently generating about -0.02 per unit of risk. If you would invest 255.00 in Huaxia Fund Management on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Huaxia Fund Management or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.68% |
| Values | Daily Returns |
Huaxia Fund Management vs. iRay Technology Co
Performance |
| Timeline |
| Huaxia Fund Management |
| iRay Technology |
Huaxia Fund and IRay Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and IRay Technology
The main advantage of trading using opposite Huaxia Fund and IRay Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, IRay Technology 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 IRay Technology will offset losses from the drop in IRay Technology's long position.| Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited | Huaxia Fund vs. China Construction Bank |
| IRay Technology vs. BTG Hotels Group | IRay Technology vs. Huatian Hotel Group | IRay Technology vs. Nanxing Furniture Machinery | IRay Technology vs. Huaxia 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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