Correlation Between AVIC Fund and Iat Automobile
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By analyzing existing cross correlation between AVIC Fund Management and Iat Automobile Technology, you can compare the effects of market volatilities on AVIC Fund and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Iat Automobile.
Diversification Opportunities for AVIC Fund and Iat Automobile
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between AVIC and Iat is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of AVIC Fund i.e., AVIC Fund and Iat Automobile go up and down completely randomly.
Pair Corralation between AVIC Fund and Iat Automobile
Assuming the 90 days trading horizon AVIC Fund is expected to generate 1.0 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, AVIC Fund Management is 5.24 times less risky than Iat Automobile. It trades about 0.07 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,234 in Iat Automobile Technology on October 19, 2024 and sell it today you would lose (101.00) from holding Iat Automobile Technology or give up 8.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.29% |
| Values | Daily Returns |
AVIC Fund Management vs. Iat Automobile Technology
Performance |
| Timeline |
| AVIC Fund Management |
| Iat Automobile Technology |
AVIC Fund and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Iat Automobile
The main advantage of trading using opposite AVIC Fund and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| AVIC Fund vs. Digiwin Software Co | AVIC Fund vs. Linewell Software Co | AVIC Fund vs. Servyou Software Group | AVIC Fund vs. Thunder Software Technology |
| Iat Automobile vs. Yangmei Chemical Co | Iat Automobile vs. HeBei Jinniu Chemical | Iat Automobile vs. Xinxiang Chemical Fiber | Iat Automobile vs. Shenyang Chemical Industry |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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