Correlation Between AVIC Fund and Citic Guoan
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By analyzing existing cross correlation between AVIC Fund Management and Citic Guoan Wine, you can compare the effects of market volatilities on AVIC Fund and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Citic Guoan.
Diversification Opportunities for AVIC Fund and Citic Guoan
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between AVIC and Citic is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of AVIC Fund i.e., AVIC Fund and Citic Guoan go up and down completely randomly.
Pair Corralation between AVIC Fund and Citic Guoan
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.22 times more return on investment than Citic Guoan. However, AVIC Fund Management is 4.48 times less risky than Citic Guoan. It trades about 0.64 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.35 per unit of risk. If you would invest 1,011 in AVIC Fund Management on October 10, 2024 and sell it today you would earn a total of 88.00 from holding AVIC Fund Management or generate 8.7% 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. Citic Guoan Wine
Performance |
| Timeline |
| AVIC Fund Management |
| Citic Guoan Wine |
AVIC Fund and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Citic Guoan
The main advantage of trading using opposite AVIC Fund and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| AVIC Fund vs. XiaMen HongXin Electron tech | AVIC Fund vs. Chengdu Spaceon Electronics | AVIC Fund vs. Eyebright Medical Technology | AVIC Fund vs. Tianshui Huatian Technology |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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