Correlation Between AVIC Fund and Zotye Automobile
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By analyzing existing cross correlation between AVIC Fund Management and Zotye Automobile Co, you can compare the effects of market volatilities on AVIC Fund and Zotye Automobile 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 Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Zotye Automobile.
Diversification Opportunities for AVIC Fund and Zotye Automobile
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVIC and Zotye is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile 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 Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of AVIC Fund i.e., AVIC Fund and Zotye Automobile go up and down completely randomly.
Pair Corralation between AVIC Fund and Zotye Automobile
Assuming the 90 days trading horizon AVIC Fund is expected to generate 3.77 times less return on investment than Zotye Automobile. But when comparing it to its historical volatility, AVIC Fund Management is 15.65 times less risky than Zotye Automobile. It trades about 0.38 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 248.00 in Zotye Automobile Co on September 5, 2024 and sell it today you would earn a total of 18.00 from holding Zotye Automobile Co or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Zotye Automobile Co
Performance |
| Timeline |
| AVIC Fund Management |
| Zotye Automobile |
AVIC Fund and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Zotye Automobile
The main advantage of trading using opposite AVIC Fund and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
| Zotye Automobile vs. Harvest Fund Management | Zotye Automobile vs. Innovative Medical Management | Zotye Automobile vs. Huaxia Fund Management | Zotye Automobile vs. AVIC Fund Management |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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