Correlation Between Huafa Industrial and V V
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By analyzing existing cross correlation between Huafa Industrial Co and V V Food, you can compare the effects of market volatilities on Huafa Industrial and V V 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 Huafa Industrial with a short position of V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and V V.
Diversification Opportunities for Huafa Industrial and V V
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huafa and 600300 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and V V go up and down completely randomly.
Pair Corralation between Huafa Industrial and V V
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the V V. In addition to that, Huafa Industrial is 1.6 times more volatile than V V Food. It trades about -0.01 of its total potential returns per unit of risk. V V Food is currently generating about 0.0 per unit of volatility. If you would invest 348.00 in V V Food on September 5, 2024 and sell it today you would lose (25.00) from holding V V Food or give up 7.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Huafa Industrial Co vs. V V Food
Performance |
| Timeline |
| Huafa Industrial |
| V V Food |
Huafa Industrial and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and V V
The main advantage of trading using opposite Huafa Industrial and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| Huafa Industrial vs. Panda Financial Holding | Huafa Industrial vs. Unisplendour Corp | Huafa Industrial vs. Xiamen Bank Co | Huafa Industrial vs. Guangdong Shenglu Telecommunication |
| V V vs. Poly Real Estate | V V vs. China Vanke Co | V V vs. China Merchants Shekou | V V vs. Huafa Industrial 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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