Correlation Between China Securities and AVIC Heavy
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By analyzing existing cross correlation between China Securities 800 and AVIC Heavy Machinery, you can compare the effects of market volatilities on China Securities and AVIC Heavy 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 Securities with a short position of AVIC Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and AVIC Heavy.
Diversification Opportunities for China Securities and AVIC Heavy
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and AVIC is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and AVIC Heavy Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVIC Heavy Machinery and China Securities 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 Securities 800 are associated (or correlated) with AVIC Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVIC Heavy Machinery has no effect on the direction of China Securities i.e., China Securities and AVIC Heavy go up and down completely randomly.
Pair Corralation between China Securities and AVIC Heavy
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.57 times more return on investment than AVIC Heavy. However, China Securities 800 is 1.76 times less risky than AVIC Heavy. It trades about 0.0 of its potential returns per unit of risk. AVIC Heavy Machinery is currently generating about -0.17 per unit of risk. If you would invest 427,236 in China Securities 800 on September 5, 2024 and sell it today you would lose (1,324) from holding China Securities 800 or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. AVIC Heavy Machinery
Performance |
| Timeline |
China Securities and AVIC Heavy Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
AVIC Heavy Machinery
Pair trading matchups for AVIC Heavy
Pair Trading with China Securities and AVIC Heavy
The main advantage of trading using opposite China Securities and AVIC Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, AVIC Heavy 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 Heavy will offset losses from the drop in AVIC Heavy's long position.| China Securities vs. Maider Medical Industry | China Securities vs. Cowealth Medical China | China Securities vs. Contec Medical Systems | China Securities vs. BTG Hotels Group |
| AVIC Heavy vs. Sunwave Communications Co | AVIC Heavy vs. Wintao Communications Co | AVIC Heavy vs. Servyou Software Group | AVIC Heavy vs. Xinjiang Communications Construction |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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