Correlation Between AVIC Fund and Luolai Home
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By analyzing existing cross correlation between AVIC Fund Management and Luolai Home Textile, you can compare the effects of market volatilities on AVIC Fund and Luolai Home 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 Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Luolai Home.
Diversification Opportunities for AVIC Fund and Luolai Home
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVIC and Luolai is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile 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 Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of AVIC Fund i.e., AVIC Fund and Luolai Home go up and down completely randomly.
Pair Corralation between AVIC Fund and Luolai Home
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.4 times more return on investment than Luolai Home. However, AVIC Fund Management is 2.5 times less risky than Luolai Home. It trades about 0.07 of its potential returns per unit of risk. Luolai Home Textile is currently generating about -0.03 per unit of risk. If you would invest 884.00 in AVIC Fund Management on October 27, 2024 and sell it today you would earn a total of 212.00 from holding AVIC Fund Management or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 92.32% |
| Values | Daily Returns |
AVIC Fund Management vs. Luolai Home Textile
Performance |
| Timeline |
| AVIC Fund Management |
| Luolai Home Textile |
AVIC Fund and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Luolai Home
The main advantage of trading using opposite AVIC Fund and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home'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 |
| Luolai Home vs. Xinjiang Communications Construction | Luolai Home vs. Sanbo Hospital Management | Luolai Home vs. Beijing Bewinner Communications | Luolai Home 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 CEOs Directory module to screen CEOs from public companies around the world.
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