Correlation Between China Asset and Invengo Information
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By analyzing existing cross correlation between China Asset Management and Invengo Information Technology, you can compare the effects of market volatilities on China Asset and Invengo 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 China Asset with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Invengo Information.
Diversification Opportunities for China Asset and Invengo Information
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Invengo is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and China Asset 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 China Asset Management are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of China Asset i.e., China Asset and Invengo Information go up and down completely randomly.
Pair Corralation between China Asset and Invengo Information
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.38 times more return on investment than Invengo Information. However, China Asset Management is 2.63 times less risky than Invengo Information. It trades about 0.45 of its potential returns per unit of risk. Invengo Information Technology is currently generating about -0.11 per unit of risk. If you would invest 359.00 in China Asset Management on October 30, 2024 and sell it today you would earn a total of 37.00 from holding China Asset Management or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Invengo Information Technology
Performance |
| Timeline |
| China Asset Management |
| Invengo Information |
China Asset and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Invengo Information
The main advantage of trading using opposite China Asset and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Invengo 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| China Asset vs. Ningbo Construction Co | China Asset vs. Eastroc Beverage Group | China Asset vs. Anhui Huaheng Biotechnology | China Asset vs. Allied Machinery Co |
| Invengo Information vs. UE Furniture Co | Invengo Information vs. Hangzhou Pinming Software | Invengo Information vs. Mengtian Home Group | Invengo Information vs. Easyhome New Retail |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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