Correlation Between China Asset and AVIC Fund
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By analyzing existing cross correlation between China Asset Management and AVIC Fund Management, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and AVIC Fund.
Diversification Opportunities for China Asset and AVIC Fund
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and AVIC is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 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 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 China Asset i.e., China Asset and AVIC Fund go up and down completely randomly.
Pair Corralation between China Asset and AVIC Fund
Assuming the 90 days trading horizon China Asset Management is expected to generate 3.21 times more return on investment than AVIC Fund. However, China Asset is 3.21 times more volatile than AVIC Fund Management. It trades about 0.2 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.25 per unit of risk. If you would invest 323.00 in China Asset Management on September 13, 2024 and sell it today you would earn a total of 18.00 from holding China Asset Management or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. AVIC Fund Management
Performance |
| Timeline |
| China Asset Management |
| AVIC Fund Management |
China Asset and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and AVIC Fund
The main advantage of trading using opposite China Asset and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
| AVIC Fund vs. China Sports Industry | AVIC Fund vs. Jahen Household Products | AVIC Fund vs. Duzhe Publishing Media | AVIC Fund vs. Guangzhou Seagull Kitchen |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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