Correlation Between AVIC Fund and State Grid
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By analyzing existing cross correlation between AVIC Fund Management and State Grid InformationCommunication, you can compare the effects of market volatilities on AVIC Fund and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and State Grid.
Diversification Opportunities for AVIC Fund and State Grid
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVIC and State is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of AVIC Fund i.e., AVIC Fund and State Grid go up and down completely randomly.
Pair Corralation between AVIC Fund and State Grid
Assuming the 90 days trading horizon AVIC Fund is expected to generate 10.26 times less return on investment than State Grid. But when comparing it to its historical volatility, AVIC Fund Management is 19.16 times less risky than State Grid. It trades about 0.21 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,040 in State Grid InformationCommunication on September 1, 2024 and sell it today you would earn a total of 182.00 from holding State Grid InformationCommunication or generate 8.92% 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. State Grid InformationCommunic
Performance |
| Timeline |
| AVIC Fund Management |
| State Grid Informati |
AVIC Fund and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and State Grid
The main advantage of trading using opposite AVIC Fund and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's 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 |
| State Grid vs. Guangzhou KingTeller Technology | State Grid vs. Aofu Environmental Technology | State Grid vs. Guangdong Liantai Environmental | State Grid vs. Hubei Forbon Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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