Correlation Between AVIC Fund and Ningbo Homelink
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By analyzing existing cross correlation between AVIC Fund Management and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on AVIC Fund and Ningbo Homelink 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 Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Ningbo Homelink.
Diversification Opportunities for AVIC Fund and Ningbo Homelink
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVIC and Ningbo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco 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 Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of AVIC Fund i.e., AVIC Fund and Ningbo Homelink go up and down completely randomly.
Pair Corralation between AVIC Fund and Ningbo Homelink
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.19 times more return on investment than Ningbo Homelink. However, AVIC Fund Management is 5.23 times less risky than Ningbo Homelink. It trades about 0.61 of its potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about -0.09 per unit of risk. If you would invest 1,021 in AVIC Fund Management on October 12, 2024 and sell it today you would earn a total of 81.00 from holding AVIC Fund Management or generate 7.93% 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 Homelink Eco iTech
Performance |
| Timeline |
| AVIC Fund Management |
| Ningbo Homelink Eco |
AVIC Fund and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Ningbo Homelink
The main advantage of trading using opposite AVIC Fund and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Ningbo Homelink 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 Homelink will offset losses from the drop in Ningbo Homelink's long position.| AVIC Fund vs. Shenzhen Glory Medical | AVIC Fund vs. Chongqing Brewery Co | AVIC Fund vs. Hengkang Medical Group | AVIC Fund vs. CSSC Offshore Marine |
| Ningbo Homelink vs. Everjoy Health Group | Ningbo Homelink vs. Hangzhou Minsheng Healthcare | Ningbo Homelink vs. Sunny Loan Top | Ningbo Homelink vs. Success Electronics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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