Correlation Between Huaxia Fund and Harbin Air
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By analyzing existing cross correlation between Huaxia Fund Management and Harbin Air Conditioning, you can compare the effects of market volatilities on Huaxia Fund and Harbin Air 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 Huaxia Fund with a short position of Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Harbin Air.
Diversification Opportunities for Huaxia Fund and Harbin Air
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huaxia and Harbin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning and Huaxia 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 Huaxia Fund Management are associated (or correlated) with Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Harbin Air go up and down completely randomly.
Pair Corralation between Huaxia Fund and Harbin Air
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 9.72 times less return on investment than Harbin Air. But when comparing it to its historical volatility, Huaxia Fund Management is 2.56 times less risky than Harbin Air. It trades about 0.07 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Harbin Air Conditioning on September 13, 2024 and sell it today you would earn a total of 162.00 from holding Harbin Air Conditioning or generate 44.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Huaxia Fund Management vs. Harbin Air Conditioning
Performance |
Timeline |
Huaxia Fund Management |
Harbin Air Conditioning |
Huaxia Fund and Harbin Air Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huaxia Fund and Harbin Air
The main advantage of trading using opposite Huaxia Fund and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.Huaxia Fund vs. Dymatic Chemicals | Huaxia Fund vs. Vanfund Urban Investment | Huaxia Fund vs. Yangmei Chemical Co | Huaxia Fund vs. Hubei Geoway Investment |
Harbin Air vs. Huaxia Fund Management | Harbin Air vs. Gifore Agricultural Machinery | Harbin Air vs. Qijing Machinery | Harbin Air vs. Hongrun Construction Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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