Correlation Between AVIC Fund and Tonghua Grape
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By analyzing existing cross correlation between AVIC Fund Management and Tonghua Grape Wine, you can compare the effects of market volatilities on AVIC Fund and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Tonghua Grape.
Diversification Opportunities for AVIC Fund and Tonghua Grape
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVIC and Tonghua is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of AVIC Fund i.e., AVIC Fund and Tonghua Grape go up and down completely randomly.
Pair Corralation between AVIC Fund and Tonghua Grape
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.28 times more return on investment than Tonghua Grape. However, AVIC Fund Management is 3.53 times less risky than Tonghua Grape. It trades about 0.11 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.02 per unit of risk. If you would invest 850.00 in AVIC Fund Management on September 4, 2024 and sell it today you would earn a total of 168.00 from holding AVIC Fund Management or generate 19.76% 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. Tonghua Grape Wine
Performance |
| Timeline |
| AVIC Fund Management |
| Tonghua Grape Wine |
AVIC Fund and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Tonghua Grape
The main advantage of trading using opposite AVIC Fund and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape'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 |
| Tonghua Grape vs. Chengdu Spaceon Electronics | Tonghua Grape vs. Qingdao Foods Co | Tonghua Grape vs. AVIC Fund Management | Tonghua Grape vs. Jiahe Foods Industry |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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