Correlation Between AVIC Fund and Guangzhou Haige
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By analyzing existing cross correlation between AVIC Fund Management and Guangzhou Haige Communications, you can compare the effects of market volatilities on AVIC Fund and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Guangzhou Haige.
Diversification Opportunities for AVIC Fund and Guangzhou Haige
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AVIC and Guangzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of AVIC Fund i.e., AVIC Fund and Guangzhou Haige go up and down completely randomly.
Pair Corralation between AVIC Fund and Guangzhou Haige
Assuming the 90 days trading horizon AVIC Fund is expected to generate 1.88 times less return on investment than Guangzhou Haige. But when comparing it to its historical volatility, AVIC Fund Management is 3.73 times less risky than Guangzhou Haige. It trades about 0.08 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 955.00 in Guangzhou Haige Communications on August 31, 2024 and sell it today you would earn a total of 275.00 from holding Guangzhou Haige Communications or generate 28.8% 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. Guangzhou Haige Communications
Performance |
| Timeline |
| AVIC Fund Management |
| Guangzhou Haige Comm |
AVIC Fund and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Guangzhou Haige
The main advantage of trading using opposite AVIC Fund and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige'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 |
| Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. NAURA Technology Group | Guangzhou Haige vs. APT Medical | Guangzhou Haige vs. Contemporary Amperex Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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