Correlation Between Growth Fund and Huaxia Fund
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By analyzing existing cross correlation between Growth Fund Of and Huaxia Fund Management, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Huaxia Fund.
Diversification Opportunities for Growth Fund and Huaxia Fund
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Growth and Huaxia is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of 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 Growth 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 Growth Fund Of 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 Growth Fund i.e., Growth Fund and Huaxia Fund go up and down completely randomly.
Pair Corralation between Growth Fund and Huaxia Fund
Assuming the 90 days horizon Growth Fund is expected to generate 6.99 times less return on investment than Huaxia Fund. But when comparing it to its historical volatility, Growth Fund Of is 1.19 times less risky than Huaxia Fund. It trades about 0.05 of its potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 261.00 in Huaxia Fund Management on November 3, 2024 and sell it today you would earn a total of 47.00 from holding Huaxia Fund Management or generate 18.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Growth Fund Of vs. Huaxia Fund Management
Performance |
| Timeline |
| Growth Fund |
| Huaxia Fund Management |
Growth Fund and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Huaxia Fund
The main advantage of trading using opposite Growth Fund and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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