Correlation Between Chengdu Xingrong and AVCON Information
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By analyzing existing cross correlation between Chengdu Xingrong Investment and AVCON Information Tech, you can compare the effects of market volatilities on Chengdu Xingrong and AVCON Information 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 Chengdu Xingrong with a short position of AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and AVCON Information.
Diversification Opportunities for Chengdu Xingrong and AVCON Information
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and AVCON is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and AVCON Information go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and AVCON Information
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.47 times more return on investment than AVCON Information. However, Chengdu Xingrong Investment is 2.11 times less risky than AVCON Information. It trades about 0.06 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.02 per unit of risk. If you would invest 546.00 in Chengdu Xingrong Investment on September 12, 2024 and sell it today you would earn a total of 167.00 from holding Chengdu Xingrong Investment or generate 30.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. AVCON Information Tech
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| AVCON Information Tech |
Chengdu Xingrong and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and AVCON Information
The main advantage of trading using opposite Chengdu Xingrong and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Chengdu Xingrong vs. Sportsoul Co Ltd | Chengdu Xingrong vs. Guizhou BroadcastingTV Info | Chengdu Xingrong vs. Lander Sports Development | Chengdu Xingrong vs. Road Environment Technology |
| AVCON Information vs. Gansu Jiu Steel | AVCON Information vs. Shandong Mining Machinery | AVCON Information vs. Aba Chemicals Corp | AVCON Information vs. BlueFocus Communication 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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