Correlation Between AVCON Information and Suzhou Douson
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By analyzing existing cross correlation between AVCON Information Tech and Suzhou Douson Drilling, you can compare the effects of market volatilities on AVCON Information and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Suzhou Douson.
Diversification Opportunities for AVCON Information and Suzhou Douson
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AVCON and Suzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of AVCON Information i.e., AVCON Information and Suzhou Douson go up and down completely randomly.
Pair Corralation between AVCON Information and Suzhou Douson
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.16 times more return on investment than Suzhou Douson. However, AVCON Information is 1.16 times more volatile than Suzhou Douson Drilling. It trades about 0.03 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.02 per unit of risk. If you would invest 378.00 in AVCON Information Tech on September 13, 2024 and sell it today you would earn a total of 127.00 from holding AVCON Information Tech or generate 33.6% 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. Suzhou Douson Drilling
Performance |
Timeline |
AVCON Information Tech |
Suzhou Douson Drilling |
AVCON Information and Suzhou Douson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AVCON Information and Suzhou Douson
The main advantage of trading using opposite AVCON Information and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson'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 |
Suzhou Douson vs. Guangdong Jingyi Metal | Suzhou Douson vs. Datang HuaYin Electric | Suzhou Douson vs. AVCON Information Tech | Suzhou Douson vs. Yunnan Xiyi Industrial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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