Correlation Between AVCON Information and Guangdong Wens
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By analyzing existing cross correlation between AVCON Information Tech and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on AVCON Information and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Guangdong Wens.
Diversification Opportunities for AVCON Information and Guangdong Wens
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVCON and Guangdong is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of AVCON Information i.e., AVCON Information and Guangdong Wens go up and down completely randomly.
Pair Corralation between AVCON Information and Guangdong Wens
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 2.01 times more return on investment than Guangdong Wens. However, AVCON Information is 2.01 times more volatile than Guangdong Wens Foodstuff. It trades about 0.02 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about 0.0 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| AVCON Information Tech |
| Guangdong Wens Foodstuff |
AVCON Information and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Guangdong Wens
The main advantage of trading using opposite AVCON Information and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' 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 |
| Guangdong Wens vs. Nanjing Putian Telecommunications | Guangdong Wens vs. Tianjin Realty Development | Guangdong Wens vs. Kangyue Technology Co | Guangdong Wens vs. Shenzhen Hifuture Electric |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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