Correlation Between Harvest Fund and Shengtak New

Can any of the company-specific risk be diversified away by investing in both Harvest Fund and Shengtak New 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 Shengtak New 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 Shengtak New Material, you can compare the effects of market volatilities on Harvest Fund and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Fund and Shengtak New.

Diversification Opportunities for Harvest Fund and Shengtak New

-0.16

Correlation Coefficient

Harvest Fund  Shengtak New

Good diversification

The 3 months correlation between Harvest and Shengtak is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Fund Management and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Harvest Fund i.e., Harvest Fund and Shengtak New go up and down completely randomly.

Pair Corralation between Harvest Fund and Shengtak New

Assuming the 90 days trading horizon Harvest Fund Management is expected to generate 0.42 times more return on investment than Shengtak New. However, Harvest Fund Management is 2.41 times less risky than Shengtak New. It trades about 0.45 of its potential returns per unit of risk. Shengtak New Material is currently generating about -0.05 per unit of risk. If you would invest  257.00  in Harvest Fund Management on September 28, 2024 and sell it today you would earn a total of  17.00  from holding Harvest Fund Management or generate 6.61% return on investment over 90 days.

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

Harvest Fund Management  vs.  Shengtak New Material

Harvest Fund Management

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Harvest Fund Management are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Harvest Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Shengtak New Material

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shengtak New Material has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shengtak New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Harvest Fund and Shengtak New

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

The idea behind Harvest Fund Management and Shengtak New Material 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.