Correlation Between AVCON Information and China Railway
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By analyzing existing cross correlation between AVCON Information Tech and China Railway Construction, you can compare the effects of market volatilities on AVCON Information and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and China Railway.
Diversification Opportunities for AVCON Information and China Railway
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AVCON and China is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of AVCON Information i.e., AVCON Information and China Railway go up and down completely randomly.
Pair Corralation between AVCON Information and China Railway
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.53 times more return on investment than China Railway. However, AVCON Information is 1.53 times more volatile than China Railway Construction. It trades about 0.13 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.12 per unit of risk. If you would invest 405.00 in AVCON Information Tech on August 31, 2024 and sell it today you would earn a total of 82.00 from holding AVCON Information Tech or generate 20.25% 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. China Railway Construction
Performance |
| Timeline |
| AVCON Information Tech |
| China Railway Constr |
AVCON Information and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and China Railway
The main advantage of trading using opposite AVCON Information and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| AVCON Information vs. Kweichow Moutai Co | AVCON Information vs. NAURA Technology Group | AVCON Information vs. APT Medical | AVCON Information vs. Contemporary Amperex Technology |
| China Railway vs. China World Trade | China Railway vs. CSSC Offshore Marine | China Railway vs. Oriental Times Media | China Railway vs. China Publishing Media |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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