Correlation Between AVIC Fund and Tongyu Communication
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By analyzing existing cross correlation between AVIC Fund Management and Tongyu Communication, you can compare the effects of market volatilities on AVIC Fund and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Tongyu Communication.
Diversification Opportunities for AVIC Fund and Tongyu Communication
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVIC and Tongyu is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of AVIC Fund i.e., AVIC Fund and Tongyu Communication go up and down completely randomly.
Pair Corralation between AVIC Fund and Tongyu Communication
Assuming the 90 days trading horizon AVIC Fund is expected to generate 396.13 times less return on investment than Tongyu Communication. But when comparing it to its historical volatility, AVIC Fund Management is 12.69 times less risky than Tongyu Communication. It trades about 0.01 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,069 in Tongyu Communication on August 30, 2024 and sell it today you would earn a total of 638.00 from holding Tongyu Communication or generate 59.68% 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. Tongyu Communication
Performance |
| Timeline |
| AVIC Fund Management |
| Tongyu Communication |
AVIC Fund and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Tongyu Communication
The main advantage of trading using opposite AVIC Fund and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication'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 |
| Tongyu Communication vs. China State Construction | Tongyu Communication vs. Huafa Industrial Co | Tongyu Communication vs. China International Capital | Tongyu Communication vs. Kweichow Moutai Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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