Correlation Between Ningbo Tech and AVIC Fund
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By analyzing existing cross correlation between Ningbo Tech Bank Co and AVIC Fund Management, you can compare the effects of market volatilities on Ningbo Tech 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 Ningbo Tech with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and AVIC Fund.
Diversification Opportunities for Ningbo Tech and AVIC Fund
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and AVIC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co 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 Ningbo Tech 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 Ningbo Tech Bank Co 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 Ningbo Tech i.e., Ningbo Tech and AVIC Fund go up and down completely randomly.
Pair Corralation between Ningbo Tech and AVIC Fund
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 14.92 times more return on investment than AVIC Fund. However, Ningbo Tech is 14.92 times more volatile than AVIC Fund Management. It trades about 0.21 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.21 per unit of risk. If you would invest 285.00 in Ningbo Tech Bank Co on September 1, 2024 and sell it today you would earn a total of 43.00 from holding Ningbo Tech Bank Co or generate 15.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. AVIC Fund Management
Performance |
| Timeline |
| Ningbo Tech Bank |
| AVIC Fund Management |
Ningbo Tech and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and AVIC Fund
The main advantage of trading using opposite Ningbo Tech and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech 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.| Ningbo Tech vs. Ming Yang Smart | Ningbo Tech vs. 159681 | Ningbo Tech vs. 159005 | Ningbo Tech vs. Loctek Ergonomic Technology |
| AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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