Correlation Between Harvest Fund and Gansu Huangtai

Can any of the company-specific risk be diversified away by investing in both Harvest Fund and Gansu Huangtai at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Harvest Fund and Gansu Huangtai into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Harvest Fund Management and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Harvest Fund and Gansu Huangtai 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 Harvest Fund with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Fund and Gansu Huangtai.

Diversification Opportunities for Harvest Fund and Gansu Huangtai

-0.72

Correlation Coefficient

Harvest Fund  Gansu Huangtai

Pay attention - limited upside

The 3 months correlation between Harvest and Gansu is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Fund Management and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Harvest 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 Harvest Fund Management are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Harvest Fund i.e., Harvest Fund and Gansu Huangtai go up and down completely randomly.

Pair Corralation between Harvest Fund and Gansu Huangtai

Assuming the 90 days trading horizon Harvest Fund Management is expected to generate 0.42 times more return on investment than Gansu Huangtai. However, Harvest Fund Management is 2.38 times less risky than Gansu Huangtai. It trades about 0.32 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about -0.06 per unit of risk. If you would invest  274.00  in Harvest Fund Management on December 26, 2024 and sell it today you would earn a total of  77.00  from holding Harvest Fund Management or generate 28.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Harvest Fund Management  vs.  Gansu Huangtai Wine marketing

Harvest Fund Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Harvest Fund Management are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Harvest Fund sustained solid returns over the last few months and may actually be approaching a breakup point.

Gansu Huangtai Wine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gansu Huangtai Wine marketing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Harvest Fund and Gansu Huangtai

The main advantage of trading using opposite Harvest Fund and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Fund position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.

The idea behind Harvest Fund Management and Gansu Huangtai Wine marketing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.