Correlation Between Shantou Wanshun and AVIC Fund
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By analyzing existing cross correlation between Shantou Wanshun Package and AVIC Fund Management, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and AVIC Fund.
Diversification Opportunities for Shantou Wanshun and AVIC Fund
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shantou and AVIC is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package 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 Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and AVIC Fund go up and down completely randomly.
Pair Corralation between Shantou Wanshun and AVIC Fund
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to under-perform the AVIC Fund. In addition to that, Shantou Wanshun is 3.49 times more volatile than AVIC Fund Management. It trades about -0.49 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.5 per unit of volatility. If you would invest 1,030 in AVIC Fund Management on October 14, 2024 and sell it today you would earn a total of 69.00 from holding AVIC Fund Management or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. AVIC Fund Management
Performance |
| Timeline |
| Shantou Wanshun Package |
| AVIC Fund Management |
Shantou Wanshun and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and AVIC Fund
The main advantage of trading using opposite Shantou Wanshun and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. Hangzhou Minsheng Healthcare | Shantou Wanshun vs. Everjoy Health Group | Shantou Wanshun vs. TianJin 712 Communication | Shantou Wanshun vs. Fiberhome Telecommunication Technologies |
| AVIC Fund vs. Jinsanjiang Silicon Material | AVIC Fund vs. Liaoning Dingjide Petrochemical | AVIC Fund vs. Jilin Chemical Fibre | AVIC Fund vs. Shantou Wanshun Package |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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