Correlation Between Harvest Fund and Shandong Hongchuang
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By analyzing existing cross correlation between Harvest Fund Management and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Harvest Fund and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Fund and Shandong Hongchuang.
Diversification Opportunities for Harvest Fund and Shandong Hongchuang
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harvest and Shandong is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Fund Management and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Harvest Fund i.e., Harvest Fund and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Harvest Fund and Shandong Hongchuang
Assuming the 90 days trading horizon Harvest Fund is expected to generate 1.12 times less return on investment than Shandong Hongchuang. But when comparing it to its historical volatility, Harvest Fund Management is 2.35 times less risky than Shandong Hongchuang. It trades about 0.53 of its potential returns per unit of risk. Shandong Hongchuang Aluminum is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 807.00 in Shandong Hongchuang Aluminum on October 16, 2024 and sell it today you would earn a total of 180.00 from holding Shandong Hongchuang Aluminum or generate 22.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Harvest Fund Management vs. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Harvest Fund Management |
| Shandong Hongchuang |
Harvest Fund and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Fund and Shandong Hongchuang
The main advantage of trading using opposite Harvest Fund and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Fund position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang's long position.| Harvest Fund vs. Dezhan HealthCare Co | Harvest Fund vs. Heren Health Co | Harvest Fund vs. Heilongjiang Publishing Media | Harvest Fund vs. Guangdong Jinma Entertainment |
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