Correlation Between Ningbo Homelink and AVIC Fund
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and AVIC Fund Management, you can compare the effects of market volatilities on Ningbo Homelink 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 Ningbo Homelink with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and AVIC Fund.
Diversification Opportunities for Ningbo Homelink and AVIC Fund
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and AVIC is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech 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 Ningbo Homelink 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 Ningbo Homelink Eco iTech 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 Ningbo Homelink i.e., Ningbo Homelink and AVIC Fund go up and down completely randomly.
Pair Corralation between Ningbo Homelink and AVIC Fund
Assuming the 90 days trading horizon Ningbo Homelink Eco iTech is expected to under-perform the AVIC Fund. In addition to that, Ningbo Homelink is 3.75 times more volatile than AVIC Fund Management. It trades about -0.01 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.07 per unit of volatility. If you would invest 884.00 in AVIC Fund Management on October 27, 2024 and sell it today you would earn a total of 212.00 from holding AVIC Fund Management or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.32% |
| Values | Daily Returns |
Ningbo Homelink Eco iTech vs. AVIC Fund Management
Performance |
| Timeline |
| Ningbo Homelink Eco |
| AVIC Fund Management |
Ningbo Homelink and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Homelink and AVIC Fund
The main advantage of trading using opposite Ningbo Homelink and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink 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.| Ningbo Homelink vs. Nanxing Furniture Machinery | Ningbo Homelink vs. Great Sun Foods Co | Ningbo Homelink vs. Anhui Huilong Agricultural | Ningbo Homelink vs. Linzhou Heavy Machinery |
| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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