Correlation Between Jilin Chemical and AVIC Fund
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By analyzing existing cross correlation between Jilin Chemical Fibre and AVIC Fund Management, you can compare the effects of market volatilities on Jilin Chemical and AVIC 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 Jilin Chemical with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and AVIC Fund.
Diversification Opportunities for Jilin Chemical and AVIC Fund
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jilin and AVIC is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and AVIC Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVIC Fund Management and Jilin Chemical 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 Jilin Chemical Fibre are associated (or correlated) with AVIC Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVIC Fund Management has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and AVIC Fund go up and down completely randomly.
Pair Corralation between Jilin Chemical and AVIC Fund
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the AVIC Fund. In addition to that, Jilin Chemical is 3.32 times more volatile than AVIC Fund Management. It trades about -0.53 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.5 per unit of volatility. If you would invest 1,030 in AVIC Fund Management on October 14, 2024 and sell it today you would earn a total of 69.00 from holding AVIC Fund Management or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. AVIC Fund Management
Performance |
| Timeline |
| Jilin Chemical Fibre |
| AVIC Fund Management |
Jilin Chemical and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and AVIC Fund
The main advantage of trading using opposite Jilin Chemical and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, AVIC 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 AVIC Fund will offset losses from the drop in AVIC Fund's long position.| Jilin Chemical vs. Dezhan HealthCare Co | Jilin Chemical vs. Healthcare Co | Jilin Chemical vs. Shanghai Rongtai Health | Jilin Chemical vs. Iat Automobile Technology |
| AVIC Fund vs. Jinsanjiang Silicon Material | AVIC Fund vs. Liaoning Dingjide Petrochemical | AVIC Fund vs. Jilin Chemical Fibre | AVIC Fund vs. Shantou Wanshun Package |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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