Correlation Between AVCON Information and Shanghai Rongtai
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By analyzing existing cross correlation between AVCON Information Tech and Shanghai Rongtai Health, you can compare the effects of market volatilities on AVCON Information and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Shanghai Rongtai.
Diversification Opportunities for AVCON Information and Shanghai Rongtai
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AVCON and Shanghai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of AVCON Information i.e., AVCON Information and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between AVCON Information and Shanghai Rongtai
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.84 times more return on investment than Shanghai Rongtai. However, AVCON Information is 1.84 times more volatile than Shanghai Rongtai Health. It trades about 0.24 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.28 per unit of risk. If you would invest 425.00 in AVCON Information Tech on September 4, 2024 and sell it today you would earn a total of 72.00 from holding AVCON Information Tech or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Shanghai Rongtai Health
Performance |
| Timeline |
| AVCON Information Tech |
| Shanghai Rongtai Health |
AVCON Information and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Shanghai Rongtai
The main advantage of trading using opposite AVCON Information and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| AVCON Information vs. Wuhan Hvsen Biotechnology | AVCON Information vs. China National Software | AVCON Information vs. Ningxia Younglight Chemicals | AVCON Information vs. Inspur Software Co |
| Shanghai Rongtai vs. Shenzhen MYS Environmental | Shanghai Rongtai vs. Sinosteel Engineering and | Shanghai Rongtai vs. Qijing Machinery | Shanghai Rongtai vs. Ningbo Construction 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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