Correlation Between AVIC Fund and Ningbo David
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By analyzing existing cross correlation between AVIC Fund Management and Ningbo David Medical, you can compare the effects of market volatilities on AVIC Fund and Ningbo David 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 Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Ningbo David.
Diversification Opportunities for AVIC Fund and Ningbo David
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVIC and Ningbo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical 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 Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of AVIC Fund i.e., AVIC Fund and Ningbo David go up and down completely randomly.
Pair Corralation between AVIC Fund and Ningbo David
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.16 times more return on investment than Ningbo David. However, AVIC Fund Management is 6.19 times less risky than Ningbo David. It trades about 0.2 of its potential returns per unit of risk. Ningbo David Medical is currently generating about -0.03 per unit of risk. If you would invest 1,004 in AVIC Fund Management on September 13, 2024 and sell it today you would earn a total of 17.00 from holding AVIC Fund Management or generate 1.69% 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. Ningbo David Medical
Performance |
| Timeline |
| AVIC Fund Management |
| Ningbo David Medical |
AVIC Fund and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Ningbo David
The main advantage of trading using opposite AVIC Fund and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.| AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited | AVIC Fund vs. China Construction Bank |
| Ningbo David vs. Guangdong Brandmax Marketing | Ningbo David vs. Jiangxi Naipu Mining | Ningbo David vs. Hainan Mining Co | Ningbo David vs. Huaibei Mining Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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