Correlation Between Huaxia Fund and Caitong Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huaxia Fund Management and Caitong Securities Co, you can compare the effects of market volatilities on Huaxia Fund and Caitong Securities 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 Caitong Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Caitong Securities.
Diversification Opportunities for Huaxia Fund and Caitong Securities
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Huaxia and Caitong is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Caitong Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caitong Securities 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 Caitong Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caitong Securities has no effect on the direction of Huaxia Fund i.e., Huaxia Fund and Caitong Securities go up and down completely randomly.
Pair Corralation between Huaxia Fund and Caitong Securities
Assuming the 90 days trading horizon Huaxia Fund Management is expected to generate 0.66 times more return on investment than Caitong Securities. However, Huaxia Fund Management is 1.52 times less risky than Caitong Securities. It trades about 0.24 of its potential returns per unit of risk. Caitong Securities Co is currently generating about -0.04 per unit of risk. If you would invest 255.00 in Huaxia Fund Management on October 23, 2024 and sell it today you would earn a total of 50.00 from holding Huaxia Fund Management or generate 19.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Huaxia Fund Management vs. Caitong Securities Co
Performance |
Timeline |
Huaxia Fund Management |
Caitong Securities |
Huaxia Fund and Caitong Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huaxia Fund and Caitong Securities
The main advantage of trading using opposite Huaxia Fund and Caitong Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund position performs unexpectedly, Caitong Securities 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 Caitong Securities will offset losses from the drop in Caitong Securities' long position.Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited |
Caitong Securities vs. Fujian Newland Computer | Caitong Securities vs. Ningbo Homelink Eco iTech | Caitong Securities vs. Hunan Mendale Hometextile | Caitong Securities vs. FSPG Hi Tech Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |