Correlation Between Henan Lantian and China Fund
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By analyzing existing cross correlation between Henan Lantian Gas and China Fund Management, you can compare the effects of market volatilities on Henan Lantian and China 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 Henan Lantian with a short position of China Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and China Fund.
Diversification Opportunities for Henan Lantian and China Fund
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and China is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas and China Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fund Management and Henan Lantian 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 Henan Lantian Gas are associated (or correlated) with China Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fund Management has no effect on the direction of Henan Lantian i.e., Henan Lantian and China Fund go up and down completely randomly.
Pair Corralation between Henan Lantian and China Fund
Assuming the 90 days trading horizon Henan Lantian Gas is expected to under-perform the China Fund. In addition to that, Henan Lantian is 9.69 times more volatile than China Fund Management. It trades about -0.17 of its total potential returns per unit of risk. China Fund Management is currently generating about 0.11 per unit of volatility. If you would invest 1,002 in China Fund Management on August 29, 2024 and sell it today you would earn a total of 5.00 from holding China Fund Management or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Lantian Gas vs. China Fund Management
Performance |
| Timeline |
| Henan Lantian Gas |
| China Fund Management |
Henan Lantian and China Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and China Fund
The main advantage of trading using opposite Henan Lantian and China Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian position performs unexpectedly, China 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 China Fund will offset losses from the drop in China Fund's long position.| Henan Lantian vs. Cambricon Technologies Corp | Henan Lantian vs. Loongson Technology Corp | Henan Lantian vs. Chongqing Road Bridge | Henan Lantian vs. Shenzhen Fortune Trend |
| China Fund vs. Industrial and Commercial | China Fund vs. Kweichow Moutai Co | China Fund vs. Agricultural Bank of | China 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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