Correlation Between Harvest Fund and Wuliangye Yibin
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By analyzing existing cross correlation between Harvest Fund Management and Wuliangye Yibin Co, you can compare the effects of market volatilities on Harvest Fund and Wuliangye Yibin 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 Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Fund and Wuliangye Yibin.
Diversification Opportunities for Harvest Fund and Wuliangye Yibin
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harvest and Wuliangye is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Fund Management and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin 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 Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of Harvest Fund i.e., Harvest Fund and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between Harvest Fund and Wuliangye Yibin
Assuming the 90 days trading horizon Harvest Fund Management is expected to under-perform the Wuliangye Yibin. But the stock apears to be less risky and, when comparing its historical volatility, Harvest Fund Management is 6.16 times less risky than Wuliangye Yibin. The stock trades about -0.06 of its potential returns per unit of risk. The Wuliangye Yibin Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 12,032 in Wuliangye Yibin Co on September 3, 2024 and sell it today you would earn a total of 2,645 from holding Wuliangye Yibin Co or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Fund Management vs. Wuliangye Yibin Co
Performance |
| Timeline |
| Harvest Fund Management |
| Wuliangye Yibin |
Harvest Fund and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Fund and Wuliangye Yibin
The main advantage of trading using opposite Harvest Fund and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Fund position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin'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 |
| Wuliangye Yibin vs. Harvest Fund Management | Wuliangye Yibin vs. CICC Fund Management | Wuliangye Yibin vs. Zhejiang Qianjiang Motorcycle | Wuliangye Yibin vs. Haima Automobile Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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