Correlation Between AVCON Information and Fujian Longzhou
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By analyzing existing cross correlation between AVCON Information Tech and Fujian Longzhou Transportation, you can compare the effects of market volatilities on AVCON Information and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Fujian Longzhou.
Diversification Opportunities for AVCON Information and Fujian Longzhou
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AVCON and Fujian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of AVCON Information i.e., AVCON Information and Fujian Longzhou go up and down completely randomly.
Pair Corralation between AVCON Information and Fujian Longzhou
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.18 times more return on investment than Fujian Longzhou. However, AVCON Information is 1.18 times more volatile than Fujian Longzhou Transportation. It trades about -0.26 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.36 per unit of risk. If you would invest 490.00 in AVCON Information Tech on October 11, 2024 and sell it today you would lose (110.00) from holding AVCON Information Tech or give up 22.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| AVCON Information Tech |
| Fujian Longzhou Tran |
AVCON Information and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Fujian Longzhou
The main advantage of trading using opposite AVCON Information and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| AVCON Information vs. Tibet Huayu Mining | AVCON Information vs. China Minmetals Rare | AVCON Information vs. Chengdu Xinzhu RoadBridge | AVCON Information vs. Chongqing Road Bridge |
| Fujian Longzhou vs. AVCON Information Tech | Fujian Longzhou vs. CITIC Guoan Information | Fujian Longzhou vs. Sublime China Information | Fujian Longzhou vs. Digital China Information |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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