Correlation Between Chengdu Xingrong and AVIC Fund
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By analyzing existing cross correlation between Chengdu Xingrong Investment and AVIC Fund Management, you can compare the effects of market volatilities on Chengdu Xingrong 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 Chengdu Xingrong with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and AVIC Fund.
Diversification Opportunities for Chengdu Xingrong and AVIC Fund
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and AVIC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment 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 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 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 Chengdu Xingrong i.e., Chengdu Xingrong and AVIC Fund go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and AVIC Fund
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the AVIC Fund. In addition to that, Chengdu Xingrong is 2.46 times more volatile than AVIC Fund Management. It trades about -0.03 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.43 per unit of volatility. If you would invest 1,032 in AVIC Fund Management on October 17, 2024 and sell it today you would earn a total of 62.00 from holding AVIC Fund Management or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. AVIC Fund Management
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| AVIC Fund Management |
Chengdu Xingrong and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and AVIC Fund
The main advantage of trading using opposite Chengdu Xingrong and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong 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.| Chengdu Xingrong vs. Changjiang Jinggong Steel | Chengdu Xingrong vs. Hangzhou Guotai Environmental | Chengdu Xingrong vs. Tonghua Grape Wine | Chengdu Xingrong vs. Yindu Kitchen Equipment |
| AVIC Fund vs. Anhui Jianghuai Automobile | AVIC Fund vs. Vanfund Urban Investment | AVIC Fund vs. Hunan Investment Group | AVIC Fund vs. Chengdu Xingrong 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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