Correlation Between Industrial and Harvest Fund
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By analyzing existing cross correlation between Industrial and Commercial and Harvest Fund Management, you can compare the effects of market volatilities on Industrial and Harvest Fund 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 Industrial with a short position of Harvest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Harvest Fund.
Diversification Opportunities for Industrial and Harvest Fund
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Industrial and Harvest is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Harvest Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Fund Management and 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 Industrial and Commercial are associated (or correlated) with Harvest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Fund Management has no effect on the direction of Industrial i.e., Industrial and Harvest Fund go up and down completely randomly.
Pair Corralation between Industrial and Harvest Fund
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.83 times more return on investment than Harvest Fund. However, Industrial and Commercial is 1.2 times less risky than Harvest Fund. It trades about 0.09 of its potential returns per unit of risk. Harvest Fund Management is currently generating about -0.07 per unit of risk. If you would invest 460.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 160.00 from holding Industrial and Commercial or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Harvest Fund Management
Performance |
| Timeline |
| Industrial and Commercial |
| Harvest Fund Management |
Industrial and Harvest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Harvest Fund
The main advantage of trading using opposite Industrial and Harvest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Harvest Fund 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 Harvest Fund will offset losses from the drop in Harvest Fund's long position.| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software Co |
| Harvest Fund vs. Industrial and Commercial | Harvest Fund vs. Kweichow Moutai Co | Harvest Fund vs. Agricultural Bank of | Harvest Fund vs. China Mobile Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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