Correlation Between AVCON Information and By Health
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By analyzing existing cross correlation between AVCON Information Tech and By health, you can compare the effects of market volatilities on AVCON Information and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and By Health.
Diversification Opportunities for AVCON Information and By Health
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVCON and 300146 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of AVCON Information i.e., AVCON Information and By Health go up and down completely randomly.
Pair Corralation between AVCON Information and By Health
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.65 times more return on investment than By Health. However, AVCON Information is 1.65 times more volatile than By health. It trades about 0.03 of its potential returns per unit of risk. By health is currently generating about -0.04 per unit of risk. If you would invest 403.00 in AVCON Information Tech on September 3, 2024 and sell it today you would earn a total of 80.00 from holding AVCON Information Tech or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. By health
Performance |
| Timeline |
| AVCON Information Tech |
| By health |
AVCON Information and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and By Health
The main advantage of trading using opposite AVCON Information and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.| AVCON Information vs. Agricultural Bank of | AVCON Information vs. China Construction Bank | AVCON Information vs. Postal Savings Bank | AVCON Information vs. Bank of Communications |
| By Health vs. Beijing Wantai Biological | By Health vs. Aluminum Corp of | By Health vs. COL Digital Publishing | By Health vs. Shaanxi Meineng Clean |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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