Correlation Between Harvest Fund and Hongrun Construction
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By analyzing existing cross correlation between Harvest Fund Management and Hongrun Construction Group, you can compare the effects of market volatilities on Harvest Fund and Hongrun 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Fund and Hongrun Construction.
Diversification Opportunities for Harvest Fund and Hongrun Construction
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harvest and Hongrun is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Fund Management and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Harvest Fund i.e., Harvest Fund and Hongrun Construction go up and down completely randomly.
Pair Corralation between Harvest Fund and Hongrun Construction
Assuming the 90 days trading horizon Harvest Fund Management is expected to under-perform the Hongrun Construction. But the stock apears to be less risky and, when comparing its historical volatility, Harvest Fund Management is 1.67 times less risky than Hongrun Construction. The stock trades about -0.06 of its potential returns per unit of risk. The Hongrun Construction Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 522.00 in Hongrun Construction Group on September 12, 2024 and sell it today you would lose (41.00) from holding Hongrun Construction Group or give up 7.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Fund Management vs. Hongrun Construction Group
Performance |
| Timeline |
| Harvest Fund Management |
| Hongrun Construction |
Harvest Fund and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Fund and Hongrun Construction
The main advantage of trading using opposite Harvest Fund and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Fund position performs unexpectedly, Hongrun 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Harvest Fund vs. Kweichow Moutai Co | Harvest Fund vs. Agricultural Bank of | Harvest Fund vs. China Mobile Limited | Harvest Fund vs. China Construction Bank |
| Hongrun Construction vs. Harvest Fund Management | Hongrun Construction vs. Hunan Mendale Hometextile | Hongrun Construction vs. Shanghai Shuixing Home | Hongrun Construction vs. Xiamen Goldenhome 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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