Correlation Between Aofu Environmental and Huaxia Fund
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By analyzing existing cross correlation between Aofu Environmental Technology and Huaxia Fund Management, you can compare the effects of market volatilities on Aofu Environmental and Huaxia 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 Aofu Environmental with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Huaxia Fund.
Diversification Opportunities for Aofu Environmental and Huaxia Fund
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aofu and Huaxia is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management and Aofu Environmental 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 Aofu Environmental Technology are associated (or correlated) with Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of Aofu Environmental i.e., Aofu Environmental and Huaxia Fund go up and down completely randomly.
Pair Corralation between Aofu Environmental and Huaxia Fund
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to under-perform the Huaxia Fund. In addition to that, Aofu Environmental is 3.23 times more volatile than Huaxia Fund Management. It trades about -0.06 of its total potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.05 per unit of volatility. If you would invest 250.00 in Huaxia Fund Management on October 29, 2024 and sell it today you would earn a total of 58.00 from holding Huaxia Fund Management or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Huaxia Fund Management
Performance |
| Timeline |
| Aofu Environmental |
| Huaxia Fund Management |
Aofu Environmental and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Huaxia Fund
The main advantage of trading using opposite Aofu Environmental and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental position performs unexpectedly, Huaxia 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 Huaxia Fund will offset losses from the drop in Huaxia Fund's long position.| Aofu Environmental vs. Gifore Agricultural Machinery | Aofu Environmental vs. Lutian Machinery Co | Aofu Environmental vs. Zhongshan Broad Ocean Motor | Aofu Environmental vs. Huasi Agricultural Development |
| Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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