Correlation Between Chengdu Spaceon and AVIC Fund
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and AVIC Fund Management, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and AVIC Fund.
Diversification Opportunities for Chengdu Spaceon and AVIC Fund
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chengdu and AVIC is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics 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 Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and AVIC Fund go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and AVIC Fund
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 11.6 times more return on investment than AVIC Fund. However, Chengdu Spaceon is 11.6 times more volatile than AVIC Fund Management. It trades about 0.11 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.16 per unit of risk. If you would invest 1,311 in Chengdu Spaceon Electronics on August 25, 2024 and sell it today you would earn a total of 206.00 from holding Chengdu Spaceon Electronics or generate 15.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. AVIC Fund Management
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| AVIC Fund Management |
Chengdu Spaceon and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and AVIC Fund
The main advantage of trading using opposite Chengdu Spaceon and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. UE Furniture Co | Chengdu Spaceon vs. Ningbo MedicalSystem Biotechnology | Chengdu Spaceon vs. Shandong Homey Aquatic | Chengdu Spaceon vs. Der International Home |
| AVIC Fund vs. Guangzhou Automobile Group | AVIC Fund vs. Weichai Heavy Machinery | AVIC Fund vs. Anhui Huilong Agricultural | AVIC Fund vs. Haima Automobile Group |
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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