Correlation Between AVIC Fund and Penghua Shenzhen
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By analyzing existing cross correlation between AVIC Fund Management and Penghua Shenzhen Energy, you can compare the effects of market volatilities on AVIC Fund and Penghua Shenzhen 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 Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Penghua Shenzhen.
Diversification Opportunities for AVIC Fund and Penghua Shenzhen
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVIC and Penghua is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy 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 Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of AVIC Fund i.e., AVIC Fund and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between AVIC Fund and Penghua Shenzhen
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate about the same return on investment as Penghua Shenzhen Energy. But, AVIC Fund Management is 1.16 times less risky than Penghua Shenzhen. It trades about 0.09 of its potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.08 per unit of risk. If you would invest 514.00 in Penghua Shenzhen Energy on August 25, 2024 and sell it today you would earn a total of 88.00 from holding Penghua Shenzhen Energy or generate 17.12% 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. Penghua Shenzhen Energy
Performance |
| Timeline |
| AVIC Fund Management |
| Penghua Shenzhen Energy |
AVIC Fund and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Penghua Shenzhen
The main advantage of trading using opposite AVIC Fund and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen's long position.| AVIC Fund vs. Guangzhou Automobile Group | AVIC Fund vs. Weichai Heavy Machinery | AVIC Fund vs. Anhui Huilong Agricultural | AVIC Fund vs. Haima Automobile Group |
| Penghua Shenzhen vs. Industrial and Commercial | Penghua Shenzhen vs. Kweichow Moutai Co | Penghua Shenzhen vs. Agricultural Bank of | Penghua Shenzhen vs. China Mobile Limited |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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