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
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AVIC and Penghua is 0.83. 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 1.11 times more return on investment than Penghua Shenzhen. However, AVIC Fund is 1.11 times more volatile than Penghua Shenzhen Energy. It trades about 0.23 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 1,067 in AVIC Fund Management on November 3, 2024 and sell it today you would earn a total of 32.00 from holding AVIC Fund Management or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| 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. Fujian Wanchen Biotechnology | AVIC Fund vs. Maccura Biotechnology Co | AVIC Fund vs. China Sports Industry | AVIC Fund vs. Ningbo MedicalSystem Biotechnology |
| Penghua Shenzhen vs. China Publishing Media | Penghua Shenzhen vs. Biwin Storage Technology | Penghua Shenzhen vs. Heilongjiang Publishing Media | Penghua Shenzhen vs. Chengdu B ray Media |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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