Correlation Between Luolai Home and AVIC Fund
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By analyzing existing cross correlation between Luolai Home Textile and AVIC Fund Management, you can compare the effects of market volatilities on Luolai Home 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 Luolai Home with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luolai Home and AVIC Fund.
Diversification Opportunities for Luolai Home and AVIC Fund
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Luolai and AVIC is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Luolai Home Textile 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 Luolai Home 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 Luolai Home Textile 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 Luolai Home i.e., Luolai Home and AVIC Fund go up and down completely randomly.
Pair Corralation between Luolai Home and AVIC Fund
Assuming the 90 days trading horizon Luolai Home Textile is expected to under-perform the AVIC Fund. In addition to that, Luolai Home is 2.5 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 0.07 per unit of volatility. If you would invest 884.00 in AVIC Fund Management on October 27, 2024 and sell it today you would earn a total of 212.00 from holding AVIC Fund Management or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 92.32% |
| Values | Daily Returns |
Luolai Home Textile vs. AVIC Fund Management
Performance |
| Timeline |
| Luolai Home Textile |
| AVIC Fund Management |
Luolai Home and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luolai Home and AVIC Fund
The main advantage of trading using opposite Luolai Home and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luolai Home 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.| Luolai Home vs. Xinjiang Communications Construction | Luolai Home vs. Sanbo Hospital Management | Luolai Home vs. Beijing Bewinner Communications | Luolai Home vs. AVIC Fund Management |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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