Correlation Between AVIC Fund and Guangzhou Hangxin
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By analyzing existing cross correlation between AVIC Fund Management and Guangzhou Hangxin Aviation, you can compare the effects of market volatilities on AVIC Fund and Guangzhou Hangxin 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 Hangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Guangzhou Hangxin.
Diversification Opportunities for AVIC Fund and Guangzhou Hangxin
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AVIC and Guangzhou is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Guangzhou Hangxin Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Hangxin 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 Hangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Hangxin has no effect on the direction of AVIC Fund i.e., AVIC Fund and Guangzhou Hangxin go up and down completely randomly.
Pair Corralation between AVIC Fund and Guangzhou Hangxin
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.21 times more return on investment than Guangzhou Hangxin. However, AVIC Fund Management is 4.84 times less risky than Guangzhou Hangxin. It trades about 0.23 of its potential returns per unit of risk. Guangzhou Hangxin Aviation is currently generating about -0.2 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 Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Guangzhou Hangxin Aviation
Performance |
| Timeline |
| AVIC Fund Management |
| Guangzhou Hangxin |
AVIC Fund and Guangzhou Hangxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Guangzhou Hangxin
The main advantage of trading using opposite AVIC Fund and Guangzhou Hangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Guangzhou Hangxin 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 Hangxin will offset losses from the drop in Guangzhou Hangxin'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 |
| Guangzhou Hangxin vs. HeNan Splendor Science | Guangzhou Hangxin vs. Elite Color Environmental | Guangzhou Hangxin vs. GRG Banking Equipment | Guangzhou Hangxin vs. Shenwu Energy Saving |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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