Correlation Between Guangzhou Boji and AVCON Information
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By analyzing existing cross correlation between Guangzhou Boji Medical and AVCON Information Tech, you can compare the effects of market volatilities on Guangzhou Boji and AVCON Information 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 Guangzhou Boji with a short position of AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Boji and AVCON Information.
Diversification Opportunities for Guangzhou Boji and AVCON Information
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and AVCON is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Boji Medical and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech and Guangzhou Boji 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 Guangzhou Boji Medical are associated (or correlated) with AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Guangzhou Boji i.e., Guangzhou Boji and AVCON Information go up and down completely randomly.
Pair Corralation between Guangzhou Boji and AVCON Information
Assuming the 90 days trading horizon Guangzhou Boji Medical is expected to generate 0.92 times more return on investment than AVCON Information. However, Guangzhou Boji Medical is 1.08 times less risky than AVCON Information. It trades about 0.02 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.02 per unit of risk. If you would invest 816.00 in Guangzhou Boji Medical on September 29, 2024 and sell it today you would earn a total of 92.00 from holding Guangzhou Boji Medical or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Boji Medical vs. AVCON Information Tech
Performance |
| Timeline |
| Guangzhou Boji Medical |
| AVCON Information Tech |
Guangzhou Boji and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Boji and AVCON Information
The main advantage of trading using opposite Guangzhou Boji and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Boji position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Guangzhou Boji vs. Poly Real Estate | Guangzhou Boji vs. China Vanke Co | Guangzhou Boji vs. China Merchants Shekou | Guangzhou Boji vs. Huafa Industrial Co |
| AVCON Information vs. Shanghai Sanyou Medical | AVCON Information vs. GRG Banking Equipment | AVCON Information vs. Guangzhou Boji Medical | AVCON Information vs. Innovative Medical Management |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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