Correlation Between AVCON Information and Huaxia Eye
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By analyzing existing cross correlation between AVCON Information Tech and Huaxia Eye Hospital, you can compare the effects of market volatilities on AVCON Information and Huaxia Eye 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 Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Huaxia Eye.
Diversification Opportunities for AVCON Information and Huaxia Eye
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVCON and Huaxia is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital 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 Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of AVCON Information i.e., AVCON Information and Huaxia Eye go up and down completely randomly.
Pair Corralation between AVCON Information and Huaxia Eye
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.42 times more return on investment than Huaxia Eye. However, AVCON Information is 1.42 times more volatile than Huaxia Eye Hospital. It trades about 0.02 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.05 per unit of risk. If you would invest 392.00 in AVCON Information Tech on October 18, 2024 and sell it today you would lose (6.00) from holding AVCON Information Tech or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Huaxia Eye Hospital
Performance |
| Timeline |
| AVCON Information Tech |
| Huaxia Eye Hospital |
AVCON Information and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Huaxia Eye
The main advantage of trading using opposite AVCON Information and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| AVCON Information vs. Shenzhen Silver Basis | AVCON Information vs. Chenzhou Jingui Silver | AVCON Information vs. Mingchen Health Co | AVCON Information vs. Xinjiang Baodi Mining |
| Huaxia Eye vs. China Satellite Communications | Huaxia Eye vs. Lecron Energy Saving | Huaxia Eye vs. Guangzhou Haige Communications | Huaxia Eye vs. Industrial Bank Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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