Correlation Between AVIC Fund and China Asset
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By analyzing existing cross correlation between AVIC Fund Management and China Asset Management, you can compare the effects of market volatilities on AVIC Fund and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and China Asset.
Diversification Opportunities for AVIC Fund and China Asset
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVIC and China is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of AVIC Fund i.e., AVIC Fund and China Asset go up and down completely randomly.
Pair Corralation between AVIC Fund and China Asset
Assuming the 90 days trading horizon AVIC Fund is expected to generate 2.56 times less return on investment than China Asset. But when comparing it to its historical volatility, AVIC Fund Management is 3.21 times less risky than China Asset. It trades about 0.25 of its potential returns per unit of risk. China Asset Management is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 323.00 in China Asset Management on September 13, 2024 and sell it today you would earn a total of 18.00 from holding China Asset Management or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. China Asset Management
Performance |
| Timeline |
| AVIC Fund Management |
| China Asset Management |
AVIC Fund and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and China Asset
The main advantage of trading using opposite AVIC Fund and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| AVIC Fund vs. China Sports Industry | AVIC Fund vs. Jahen Household Products | AVIC Fund vs. Duzhe Publishing Media | AVIC Fund vs. Guangzhou Seagull Kitchen |
| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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