Correlation Between AVIC Fund and Shenzhen Bingchuan
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By analyzing existing cross correlation between AVIC Fund Management and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on AVIC Fund and Shenzhen Bingchuan 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 Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Shenzhen Bingchuan.
Diversification Opportunities for AVIC Fund and Shenzhen Bingchuan
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AVIC and Shenzhen is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan 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 Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of AVIC Fund i.e., AVIC Fund and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between AVIC Fund and Shenzhen Bingchuan
Assuming the 90 days trading horizon AVIC Fund is expected to generate 3.53 times less return on investment than Shenzhen Bingchuan. But when comparing it to its historical volatility, AVIC Fund Management is 4.52 times less risky than Shenzhen Bingchuan. It trades about 0.23 of its potential returns per unit of risk. Shenzhen Bingchuan Network is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,942 in Shenzhen Bingchuan Network on November 3, 2024 and sell it today you would earn a total of 198.00 from holding Shenzhen Bingchuan Network or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Shenzhen Bingchuan Network
Performance |
| Timeline |
| AVIC Fund Management |
| Shenzhen Bingchuan |
AVIC Fund and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Shenzhen Bingchuan
The main advantage of trading using opposite AVIC Fund and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Shenzhen Bingchuan 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 Shenzhen Bingchuan will offset losses from the drop in Shenzhen Bingchuan'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 |
| Shenzhen Bingchuan vs. Lier Chemical Co | Shenzhen Bingchuan vs. Lianhe Chemical Technology | Shenzhen Bingchuan vs. Huasi Agricultural Development | Shenzhen Bingchuan vs. Tjk Machinery Tianjin |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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