Correlation Between XiaMen HongXin and AVIC Fund
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and AVIC Fund Management, you can compare the effects of market volatilities on XiaMen HongXin 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 XiaMen HongXin with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and AVIC Fund.
Diversification Opportunities for XiaMen HongXin and AVIC Fund
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XiaMen and AVIC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech 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 XiaMen HongXin 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 XiaMen HongXin Electron tech 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 XiaMen HongXin i.e., XiaMen HongXin and AVIC Fund go up and down completely randomly.
Pair Corralation between XiaMen HongXin and AVIC Fund
Assuming the 90 days trading horizon XiaMen HongXin is expected to generate 1.04 times less return on investment than AVIC Fund. In addition to that, XiaMen HongXin is 5.69 times more volatile than AVIC Fund Management. It trades about 0.02 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.11 per unit of volatility. If you would invest 860.00 in AVIC Fund Management on October 25, 2024 and sell it today you would earn a total of 220.00 from holding AVIC Fund Management or generate 25.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. AVIC Fund Management
Performance |
| Timeline |
| XiaMen HongXin Electron |
| AVIC Fund Management |
XiaMen HongXin and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and AVIC Fund
The main advantage of trading using opposite XiaMen HongXin and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin 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.| XiaMen HongXin vs. Kweichow Moutai Co | XiaMen HongXin vs. NAURA Technology Group | XiaMen HongXin vs. APT Medical | XiaMen HongXin vs. BYD Co Ltd |
| AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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