Correlation Between China Minmetals and AVCON Information
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By analyzing existing cross correlation between China Minmetals Rare and AVCON Information Tech, you can compare the effects of market volatilities on China Minmetals 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 China Minmetals with a short position of AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and AVCON Information.
Diversification Opportunities for China Minmetals and AVCON Information
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and AVCON is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare 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 China Minmetals 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 China Minmetals Rare 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 China Minmetals i.e., China Minmetals and AVCON Information go up and down completely randomly.
Pair Corralation between China Minmetals and AVCON Information
Assuming the 90 days trading horizon China Minmetals Rare is expected to under-perform the AVCON Information. But the stock apears to be less risky and, when comparing its historical volatility, China Minmetals Rare is 1.46 times less risky than AVCON Information. The stock trades about -0.02 of its potential returns per unit of risk. The AVCON Information Tech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 422.00 in AVCON Information Tech on October 27, 2024 and sell it today you would lose (31.00) from holding AVCON Information Tech or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. AVCON Information Tech
Performance |
| Timeline |
| China Minmetals Rare |
| AVCON Information Tech |
China Minmetals and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and AVCON Information
The main advantage of trading using opposite China Minmetals and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals 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.| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
| AVCON Information vs. Bus Online Co | AVCON Information vs. Holitech Technology Co | AVCON Information vs. Gome Telecom Equipment | AVCON Information vs. Cultural Investment Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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