Correlation Between Huaxia Fund and Dow Jones
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By analyzing existing cross correlation between Huaxia Fund Management and Dow Jones Industrial, you can compare the effects of market volatilities on Huaxia Fund and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Dow Jones.
Diversification Opportunities for Huaxia Fund and Dow Jones
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Dow is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Dow Jones go up and down completely randomly.
Pair Corralation between Huaxia Fund and Dow Jones
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 1.31 times more return on investment than Dow Jones. However, Huaxia Fund is 1.31 times more volatile than Dow Jones Industrial. It trades about 0.13 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 205.00 in Huaxia Fund Management on August 29, 2024 and sell it today you would earn a total of 52.00 from holding Huaxia Fund Management or generate 25.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.78% |
| Values | Daily Returns |
Huaxia Fund Management vs. Dow Jones Industrial
Performance |
| Timeline |
Huaxia Fund and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Huaxia Fund Management
Pair trading matchups for Huaxia Fund
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Huaxia Fund and Dow Jones
The main advantage of trading using opposite Huaxia Fund and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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