Correlation Between AVIC Fund and China Eastern
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By analyzing existing cross correlation between AVIC Fund Management and China Eastern Airlines, you can compare the effects of market volatilities on AVIC Fund and China Eastern 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 Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and China Eastern.
Diversification Opportunities for AVIC Fund and China Eastern
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVIC and China is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of AVIC Fund i.e., AVIC Fund and China Eastern go up and down completely randomly.
Pair Corralation between AVIC Fund and China Eastern
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.49 times more return on investment than China Eastern. However, AVIC Fund Management is 2.06 times less risky than China Eastern. It trades about 0.61 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.55 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. China Eastern Airlines
Performance |
| Timeline |
| AVIC Fund Management |
| China Eastern Airlines |
AVIC Fund and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and China Eastern
The main advantage of trading using opposite AVIC Fund and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, China Eastern 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 Eastern will offset losses from the drop in China Eastern'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 |
| China Eastern vs. AVIC Fund Management | China Eastern vs. Jiangsu Broadcasting Cable | China Eastern vs. Cicc Fund Management | China Eastern vs. Shaanxi Broadcast TV |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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