Correlation Between AVIC Fund and Shengda Mining
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By analyzing existing cross correlation between AVIC Fund Management and Shengda Mining Co, you can compare the effects of market volatilities on AVIC Fund and Shengda Mining 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 AVIC Fund with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Shengda Mining.
Diversification Opportunities for AVIC Fund and Shengda Mining
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AVIC and Shengda is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and AVIC Fund 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 AVIC Fund Management are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of AVIC Fund i.e., AVIC Fund and Shengda Mining go up and down completely randomly.
Pair Corralation between AVIC Fund and Shengda Mining
Assuming the 90 days trading horizon AVIC Fund is expected to generate 2.4 times less return on investment than Shengda Mining. But when comparing it to its historical volatility, AVIC Fund Management is 3.5 times less risky than Shengda Mining. It trades about 0.32 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,241 in Shengda Mining Co on October 22, 2024 and sell it today you would earn a total of 124.00 from holding Shengda Mining Co or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
AVIC Fund Management vs. Shengda Mining Co
Performance |
| Timeline |
| AVIC Fund Management |
| Shengda Mining |
AVIC Fund and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Shengda Mining
The main advantage of trading using opposite AVIC Fund and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| AVIC Fund vs. Gan Yuan Foods | AVIC Fund vs. Qijing Machinery | AVIC Fund vs. Anji Foodstuff Co | AVIC Fund vs. Zhongjing Food Co |
| Shengda Mining vs. Shuhua Sports Co | Shengda Mining vs. Anhui Jianghuai Automobile | Shengda Mining vs. Iat Automobile Technology | Shengda Mining vs. China Sports Industry |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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