Correlation Between AVCON Information and Jiaozuo Wanfang
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By analyzing existing cross correlation between AVCON Information Tech and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on AVCON Information and Jiaozuo Wanfang 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 AVCON Information with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Jiaozuo Wanfang.
Diversification Opportunities for AVCON Information and Jiaozuo Wanfang
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVCON and Jiaozuo is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and AVCON Information 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 AVCON Information Tech are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of AVCON Information i.e., AVCON Information and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between AVCON Information and Jiaozuo Wanfang
Assuming the 90 days trading horizon AVCON Information Tech is expected to under-perform the Jiaozuo Wanfang. In addition to that, AVCON Information is 2.13 times more volatile than Jiaozuo Wanfang Aluminum. It trades about -0.16 of its total potential returns per unit of risk. Jiaozuo Wanfang Aluminum is currently generating about -0.02 per unit of volatility. If you would invest 659.00 in Jiaozuo Wanfang Aluminum on September 28, 2024 and sell it today you would lose (7.00) from holding Jiaozuo Wanfang Aluminum or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| AVCON Information Tech |
| Jiaozuo Wanfang Aluminum |
AVCON Information and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Jiaozuo Wanfang
The main advantage of trading using opposite AVCON Information and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| AVCON Information vs. Shanghai Sanyou Medical | AVCON Information vs. GRG Banking Equipment | AVCON Information vs. Guangzhou Boji Medical | AVCON Information vs. Innovative Medical Management |
| Jiaozuo Wanfang vs. Digital China Information | Jiaozuo Wanfang vs. Dalian Thermal Power | Jiaozuo Wanfang vs. AVCON Information Tech | Jiaozuo Wanfang vs. Hefei Metalforming Mach |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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