Correlation Between AVCON Information and Bank of Changsha
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By analyzing existing cross correlation between AVCON Information Tech and Bank of Changsha, you can compare the effects of market volatilities on AVCON Information and Bank of Changsha 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 Bank of Changsha. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Bank of Changsha.
Diversification Opportunities for AVCON Information and Bank of Changsha
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AVCON and Bank is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Bank of Changsha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Changsha 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 Bank of Changsha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Changsha has no effect on the direction of AVCON Information i.e., AVCON Information and Bank of Changsha go up and down completely randomly.
Pair Corralation between AVCON Information and Bank of Changsha
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 2.42 times more return on investment than Bank of Changsha. However, AVCON Information is 2.42 times more volatile than Bank of Changsha. It trades about 0.14 of its potential returns per unit of risk. Bank of Changsha is currently generating about 0.14 per unit of risk. If you would invest 475.00 in AVCON Information Tech on September 14, 2024 and sell it today you would earn a total of 44.00 from holding AVCON Information Tech or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Bank of Changsha
Performance |
| Timeline |
| AVCON Information Tech |
| Bank of Changsha |
AVCON Information and Bank of Changsha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Bank of Changsha
The main advantage of trading using opposite AVCON Information and Bank of Changsha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Bank of Changsha 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 Bank of Changsha will offset losses from the drop in Bank of Changsha'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 |
| Bank of Changsha vs. Northking Information Technology | Bank of Changsha vs. AVCON Information Tech | Bank of Changsha vs. Invengo Information Technology | Bank of Changsha vs. Peoples Insurance of |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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