Correlation Between AVIC Fund and Guangxi Wuzhou
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By analyzing existing cross correlation between AVIC Fund Management and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on AVIC Fund and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Guangxi Wuzhou.
Diversification Opportunities for AVIC Fund and Guangxi Wuzhou
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVIC and Guangxi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of AVIC Fund i.e., AVIC Fund and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between AVIC Fund and Guangxi Wuzhou
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.12 times more return on investment than Guangxi Wuzhou. However, AVIC Fund Management is 8.2 times less risky than Guangxi Wuzhou. It trades about 0.43 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about -0.01 per unit of risk. If you would invest 1,032 in AVIC Fund Management on October 17, 2024 and sell it today you would earn a total of 62.00 from holding AVIC Fund Management or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| AVIC Fund Management |
| Guangxi Wuzhou Commu |
AVIC Fund and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Guangxi Wuzhou
The main advantage of trading using opposite AVIC Fund and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| AVIC Fund vs. Anhui Jianghuai Automobile | AVIC Fund vs. Vanfund Urban Investment | AVIC Fund vs. Hunan Investment Group | AVIC Fund vs. Chengdu Xingrong Investment |
| Guangxi Wuzhou vs. China Petroleum Chemical | Guangxi Wuzhou vs. PetroChina Co Ltd | Guangxi Wuzhou vs. China State Construction | Guangxi Wuzhou vs. China Railway Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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