Correlation Between AVIC Fund and Wintao Communications
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By analyzing existing cross correlation between AVIC Fund Management and Wintao Communications Co, you can compare the effects of market volatilities on AVIC Fund and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Wintao Communications.
Diversification Opportunities for AVIC Fund and Wintao Communications
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AVIC and Wintao is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of AVIC Fund i.e., AVIC Fund and Wintao Communications go up and down completely randomly.
Pair Corralation between AVIC Fund and Wintao Communications
Assuming the 90 days trading horizon AVIC Fund is expected to generate 4.07 times less return on investment than Wintao Communications. But when comparing it to its historical volatility, AVIC Fund Management is 8.01 times less risky than Wintao Communications. It trades about 0.15 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,028 in Wintao Communications Co on September 5, 2024 and sell it today you would earn a total of 548.00 from holding Wintao Communications Co or generate 27.02% 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. Wintao Communications Co
Performance |
| Timeline |
| AVIC Fund Management |
| Wintao Communications |
AVIC Fund and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Wintao Communications
The main advantage of trading using opposite AVIC Fund and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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