Correlation Between Tongyu Communication and AVIC Fund
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By analyzing existing cross correlation between Tongyu Communication and AVIC Fund Management, you can compare the effects of market volatilities on Tongyu Communication 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 Tongyu Communication with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and AVIC Fund.
Diversification Opportunities for Tongyu Communication and AVIC Fund
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tongyu and AVIC is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication 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 Tongyu Communication 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 Tongyu Communication 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 Tongyu Communication i.e., Tongyu Communication and AVIC Fund go up and down completely randomly.
Pair Corralation between Tongyu Communication and AVIC Fund
Assuming the 90 days trading horizon Tongyu Communication is expected to under-perform the AVIC Fund. In addition to that, Tongyu Communication is 5.01 times more volatile than AVIC Fund Management. It trades about -0.15 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.43 per unit of volatility. If you would invest 1,032 in AVIC Fund Management on October 17, 2024 and sell it today you would earn a total of 62.00 from holding AVIC Fund Management or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. AVIC Fund Management
Performance |
| Timeline |
| Tongyu Communication |
| AVIC Fund Management |
Tongyu Communication and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and AVIC Fund
The main advantage of trading using opposite Tongyu Communication and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication 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.| Tongyu Communication vs. Rising Nonferrous Metals | Tongyu Communication vs. Offshore Oil Engineering | Tongyu Communication vs. Jiangxi Naipu Mining | Tongyu Communication vs. Zhejiang Kingland Pipeline |
| AVIC Fund vs. Anhui Jianghuai Automobile | AVIC Fund vs. Vanfund Urban Investment | AVIC Fund vs. Hunan Investment Group | AVIC Fund vs. Chengdu Xingrong Investment |
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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