Correlation Between AVIC Fund and Sunwave Communications
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By analyzing existing cross correlation between AVIC Fund Management and Sunwave Communications Co, you can compare the effects of market volatilities on AVIC Fund and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Sunwave Communications.
Diversification Opportunities for AVIC Fund and Sunwave Communications
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AVIC and Sunwave is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of AVIC Fund i.e., AVIC Fund and Sunwave Communications go up and down completely randomly.
Pair Corralation between AVIC Fund and Sunwave Communications
Assuming the 90 days trading horizon AVIC Fund is expected to generate 13.72 times less return on investment than Sunwave Communications. But when comparing it to its historical volatility, AVIC Fund Management is 17.09 times less risky than Sunwave Communications. It trades about 0.28 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 544.00 in Sunwave Communications Co on August 30, 2024 and sell it today you would earn a total of 121.00 from holding Sunwave Communications Co or generate 22.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Sunwave Communications Co
Performance |
| Timeline |
| AVIC Fund Management |
| Sunwave Communications |
AVIC Fund and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Sunwave Communications
The main advantage of trading using opposite AVIC Fund and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' 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 |
| Sunwave Communications vs. Kangxin New Materials | Sunwave Communications vs. Andon Health Co | Sunwave Communications vs. Dhc Software Co | Sunwave Communications vs. Impulse Qingdao Health |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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