Correlation Between Guangzhou Seagull and AVIC Fund
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and AVIC Fund Management, you can compare the effects of market volatilities on Guangzhou Seagull 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 Guangzhou Seagull with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and AVIC Fund.
Diversification Opportunities for Guangzhou Seagull and AVIC Fund
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and AVIC is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen 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 Guangzhou Seagull 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 Guangzhou Seagull Kitchen 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 Guangzhou Seagull i.e., Guangzhou Seagull and AVIC Fund go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and AVIC Fund
Assuming the 90 days trading horizon Guangzhou Seagull is expected to generate 4.4 times less return on investment than AVIC Fund. In addition to that, Guangzhou Seagull is 4.53 times more volatile than AVIC Fund Management. It trades about 0.01 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.1 per unit of volatility. If you would invest 854.00 in AVIC Fund Management on September 14, 2024 and sell it today you would earn a total of 172.00 from holding AVIC Fund Management or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. AVIC Fund Management
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| AVIC Fund Management |
Guangzhou Seagull and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and AVIC Fund
The main advantage of trading using opposite Guangzhou Seagull and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull 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.| Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Shenzhen Mindray Bio Medical | Guangzhou Seagull vs. Jiangsu Pacific Quartz | Guangzhou Seagull vs. G bits Network Technology |
| AVIC Fund vs. China Sports Industry | AVIC Fund vs. Jahen Household Products | AVIC Fund vs. Duzhe Publishing Media | AVIC Fund vs. Guangzhou Seagull Kitchen |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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