Correlation Between Shandong Mining and AVIC Fund
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By analyzing existing cross correlation between Shandong Mining Machinery and AVIC Fund Management, you can compare the effects of market volatilities on Shandong Mining 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 Shandong Mining with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and AVIC Fund.
Diversification Opportunities for Shandong Mining and AVIC Fund
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and AVIC is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery 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 Shandong Mining 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and AVIC Fund go up and down completely randomly.
Pair Corralation between Shandong Mining and AVIC Fund
Assuming the 90 days trading horizon Shandong Mining is expected to generate 1.67 times less return on investment than AVIC Fund. In addition to that, Shandong Mining is 5.75 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 0.32 per unit of volatility. If you would invest 1,050 in AVIC Fund Management on October 22, 2024 and sell it today you would earn a total of 42.00 from holding AVIC Fund Management or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shandong Mining Machinery vs. AVIC Fund Management
Performance |
| Timeline |
| Shandong Mining Machinery |
| AVIC Fund Management |
Shandong Mining and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and AVIC Fund
The main advantage of trading using opposite Shandong Mining and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining 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.| Shandong Mining vs. Jiugui Liquor Co | Shandong Mining vs. Jinhui Liquor Co | Shandong Mining vs. Western Mining Co | Shandong Mining vs. Shenyang Blue Silver |
| AVIC Fund vs. Gan Yuan Foods | AVIC Fund vs. Qijing Machinery | AVIC Fund vs. Anji Foodstuff Co | AVIC Fund vs. Zhongjing Food Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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