Correlation Between Harvest Fund and Shantui Construction
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By analyzing existing cross correlation between Harvest Fund Management and Shantui Construction Machinery, you can compare the effects of market volatilities on Harvest Fund and Shantui Construction 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 Harvest Fund with a short position of Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Fund and Shantui Construction.
Diversification Opportunities for Harvest Fund and Shantui Construction
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harvest and Shantui is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Fund Management and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction and Harvest 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 Harvest Fund Management are associated (or correlated) with Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Harvest Fund i.e., Harvest Fund and Shantui Construction go up and down completely randomly.
Pair Corralation between Harvest Fund and Shantui Construction
Assuming the 90 days trading horizon Harvest Fund Management is expected to under-perform the Shantui Construction. But the stock apears to be less risky and, when comparing its historical volatility, Harvest Fund Management is 6.11 times less risky than Shantui Construction. The stock trades about -0.06 of its potential returns per unit of risk. The Shantui Construction Machinery is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 682.00 in Shantui Construction Machinery on September 3, 2024 and sell it today you would earn a total of 361.00 from holding Shantui Construction Machinery or generate 52.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Fund Management vs. Shantui Construction Machinery
Performance |
| Timeline |
| Harvest Fund Management |
| Shantui Construction |
Harvest Fund and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Fund and Shantui Construction
The main advantage of trading using opposite Harvest Fund and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Fund position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Harvest Fund vs. Industrial and Commercial | Harvest Fund vs. Kweichow Moutai Co | Harvest Fund vs. Agricultural Bank of | Harvest Fund vs. China Mobile Limited |
| Shantui Construction vs. Cultural Investment Holdings | Shantui Construction vs. Gome Telecom Equipment | Shantui Construction vs. Bus Online Co | Shantui Construction vs. Holitech Technology Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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