Correlation Between AVCON Information and Jiangsu Yueda
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By analyzing existing cross correlation between AVCON Information Tech and Jiangsu Yueda Investment, you can compare the effects of market volatilities on AVCON Information and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Jiangsu Yueda.
Diversification Opportunities for AVCON Information and Jiangsu Yueda
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVCON and Jiangsu is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of AVCON Information i.e., AVCON Information and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between AVCON Information and Jiangsu Yueda
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.5 times more return on investment than Jiangsu Yueda. However, AVCON Information is 1.5 times more volatile than Jiangsu Yueda Investment. It trades about 0.27 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.23 per unit of risk. If you would invest 425.00 in AVCON Information Tech on September 5, 2024 and sell it today you would earn a total of 86.00 from holding AVCON Information Tech or generate 20.24% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| AVCON Information Tech |
| Jiangsu Yueda Investment |
AVCON Information and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Jiangsu Yueda
The main advantage of trading using opposite AVCON Information and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| AVCON Information vs. Qinghaihuading Industrial Co | AVCON Information vs. Western Metal Materials | AVCON Information vs. Yonyou Auto Information | AVCON Information vs. Gansu Yasheng Industrial |
| Jiangsu Yueda vs. Rising Nonferrous Metals | Jiangsu Yueda vs. Shaanxi Meineng Clean | Jiangsu Yueda vs. Lonkey Industrial Co | Jiangsu Yueda vs. Ningbo Ligong Online |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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