Correlation Between AVCON Information and Zhejiang Orient
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By analyzing existing cross correlation between AVCON Information Tech and Zhejiang Orient Gene, you can compare the effects of market volatilities on AVCON Information and Zhejiang Orient 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 Zhejiang Orient. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Zhejiang Orient.
Diversification Opportunities for AVCON Information and Zhejiang Orient
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVCON and Zhejiang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Zhejiang Orient Gene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Orient Gene 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 Zhejiang Orient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Orient Gene has no effect on the direction of AVCON Information i.e., AVCON Information and Zhejiang Orient go up and down completely randomly.
Pair Corralation between AVCON Information and Zhejiang Orient
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.0 times more return on investment than Zhejiang Orient. However, AVCON Information is 1.0 times more volatile than Zhejiang Orient Gene. It trades about 0.15 of its potential returns per unit of risk. Zhejiang Orient Gene is currently generating about -0.1 per unit of risk. If you would invest 470.00 in AVCON Information Tech on September 13, 2024 and sell it today you would earn a total of 49.00 from holding AVCON Information Tech or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Zhejiang Orient Gene
Performance |
| Timeline |
| AVCON Information Tech |
| Zhejiang Orient Gene |
AVCON Information and Zhejiang Orient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Zhejiang Orient
The main advantage of trading using opposite AVCON Information and Zhejiang Orient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, Zhejiang Orient 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 Zhejiang Orient will offset losses from the drop in Zhejiang Orient'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 |
| Zhejiang Orient vs. Jiangsu GDK Biotechnology | Zhejiang Orient vs. Jinhe Biotechnology Co | Zhejiang Orient vs. Youngy Health Co | Zhejiang Orient vs. Sichuan Hebang Biotechnology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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