Correlation Between AVCON Information and Xiamen Jihong
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By analyzing existing cross correlation between AVCON Information Tech and Xiamen Jihong Package, you can compare the effects of market volatilities on AVCON Information and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Xiamen Jihong.
Diversification Opportunities for AVCON Information and Xiamen Jihong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AVCON and Xiamen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of AVCON Information i.e., AVCON Information and Xiamen Jihong go up and down completely randomly.
Pair Corralation between AVCON Information and Xiamen Jihong
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.38 times more return on investment than Xiamen Jihong. However, AVCON Information is 1.38 times more volatile than Xiamen Jihong Package. It trades about 0.02 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.03 per unit of risk. If you would invest 507.00 in AVCON Information Tech on September 14, 2024 and sell it today you would earn a total of 3.00 from holding AVCON Information Tech or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
AVCON Information Tech vs. Xiamen Jihong Package
Performance |
| Timeline |
| AVCON Information Tech |
| Xiamen Jihong Package |
AVCON Information and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Xiamen Jihong
The main advantage of trading using opposite AVCON Information and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| AVCON Information vs. Industrial and Commercial | AVCON Information vs. China Construction Bank | AVCON Information vs. Bank of China | AVCON Information vs. Agricultural Bank of |
| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Shandong Gold Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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