Correlation Between Shenzhen Bingchuan and AVIC Fund
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and AVIC Fund Management, you can compare the effects of market volatilities on Shenzhen Bingchuan and AVIC Fund 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 Shenzhen Bingchuan with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and AVIC Fund.
Diversification Opportunities for Shenzhen Bingchuan and AVIC Fund
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and AVIC is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and AVIC Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVIC Fund Management and Shenzhen Bingchuan 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 Shenzhen Bingchuan Network are associated (or correlated) with AVIC Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVIC Fund Management has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and AVIC Fund go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and AVIC Fund
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 4.52 times more return on investment than AVIC Fund. However, Shenzhen Bingchuan is 4.52 times more volatile than AVIC Fund Management. It trades about 0.18 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.23 per unit of risk. If you would invest 1,942 in Shenzhen Bingchuan Network on November 3, 2024 and sell it today you would earn a total of 198.00 from holding Shenzhen Bingchuan Network or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. AVIC Fund Management
Performance |
| Timeline |
| Shenzhen Bingchuan |
| AVIC Fund Management |
Shenzhen Bingchuan and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and AVIC Fund
The main advantage of trading using opposite Shenzhen Bingchuan and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, AVIC Fund 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 AVIC Fund will offset losses from the drop in AVIC Fund's long position.| Shenzhen Bingchuan vs. Lier Chemical Co | Shenzhen Bingchuan vs. Lianhe Chemical Technology | Shenzhen Bingchuan vs. Huasi Agricultural Development | Shenzhen Bingchuan vs. Tjk Machinery Tianjin |
| AVIC Fund vs. Fujian Wanchen Biotechnology | AVIC Fund vs. Maccura Biotechnology Co | AVIC Fund vs. China Sports Industry | AVIC Fund vs. Ningbo MedicalSystem 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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