Correlation Between Zhongjing Food and AVIC Fund
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By analyzing existing cross correlation between Zhongjing Food Co and AVIC Fund Management, you can compare the effects of market volatilities on Zhongjing Food 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 Zhongjing Food with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and AVIC Fund.
Diversification Opportunities for Zhongjing Food and AVIC Fund
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongjing and AVIC is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co 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 Zhongjing Food 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 Zhongjing Food Co 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 Zhongjing Food i.e., Zhongjing Food and AVIC Fund go up and down completely randomly.
Pair Corralation between Zhongjing Food and AVIC Fund
Assuming the 90 days trading horizon Zhongjing Food Co is expected to generate 4.59 times more return on investment than AVIC Fund. However, Zhongjing Food is 4.59 times more volatile than AVIC Fund Management. It trades about 0.04 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.18 per unit of risk. If you would invest 2,484 in Zhongjing Food Co on October 22, 2024 and sell it today you would earn a total of 581.00 from holding Zhongjing Food Co or generate 23.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. AVIC Fund Management
Performance |
| Timeline |
| Zhongjing Food |
| AVIC Fund Management |
Zhongjing Food and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and AVIC Fund
The main advantage of trading using opposite Zhongjing Food and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food 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.| Zhongjing Food vs. Xiamen Bank Co | Zhongjing Food vs. Road Environment Technology | Zhongjing Food vs. Hua Xia Bank | Zhongjing Food vs. Panda Financial Holding |
| AVIC Fund vs. Gan Yuan Foods | AVIC Fund vs. Qijing Machinery | AVIC Fund vs. Anji Foodstuff Co | AVIC Fund vs. Zhongjing Food Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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