Correlation Between Jiangsu Xinning and AVCON Information
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By analyzing existing cross correlation between Jiangsu Xinning Modern and AVCON Information Tech, you can compare the effects of market volatilities on Jiangsu Xinning and AVCON Information 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 Jiangsu Xinning with a short position of AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and AVCON Information.
Diversification Opportunities for Jiangsu Xinning and AVCON Information
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and AVCON is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech and Jiangsu Xinning 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 Jiangsu Xinning Modern are associated (or correlated) with AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and AVCON Information go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and AVCON Information
Assuming the 90 days trading horizon Jiangsu Xinning is expected to generate 1.02 times less return on investment than AVCON Information. In addition to that, Jiangsu Xinning is 1.01 times more volatile than AVCON Information Tech. It trades about 0.13 of its total potential returns per unit of risk. AVCON Information Tech is currently generating about 0.14 per unit of volatility. If you would invest 442.00 in AVCON Information Tech on August 31, 2024 and sell it today you would earn a total of 45.00 from holding AVCON Information Tech or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. AVCON Information Tech
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| AVCON Information Tech |
Jiangsu Xinning and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and AVCON Information
The main advantage of trading using opposite Jiangsu Xinning and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Jiangsu Xinning vs. Dongfeng Automobile Co | Jiangsu Xinning vs. Fiberhome Telecommunication Technologies | Jiangsu Xinning vs. Yingde Greatchem Chemicals | Jiangsu Xinning vs. Guangzhou Haige Communications |
| AVCON Information vs. Kweichow Moutai Co | AVCON Information vs. NAURA Technology Group | AVCON Information vs. APT Medical | AVCON Information vs. Contemporary Amperex Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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