Correlation Between AVIC Fund and Shandong Homey
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By analyzing existing cross correlation between AVIC Fund Management and Shandong Homey Aquatic, you can compare the effects of market volatilities on AVIC Fund and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Shandong Homey.
Diversification Opportunities for AVIC Fund and Shandong Homey
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between AVIC and Shandong is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of AVIC Fund i.e., AVIC Fund and Shandong Homey go up and down completely randomly.
Pair Corralation between AVIC Fund and Shandong Homey
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.28 times more return on investment than Shandong Homey. However, AVIC Fund Management is 3.55 times less risky than Shandong Homey. It trades about 0.07 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.0 per unit of risk. If you would invest 884.00 in AVIC Fund Management on October 27, 2024 and sell it today you would earn a total of 212.00 from holding AVIC Fund Management or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.32% |
| Values | Daily Returns |
AVIC Fund Management vs. Shandong Homey Aquatic
Performance |
| Timeline |
| AVIC Fund Management |
| Shandong Homey Aquatic |
AVIC Fund and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Shandong Homey
The main advantage of trading using opposite AVIC Fund and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey'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 |
| Shandong Homey vs. Zotye Automobile Co | Shandong Homey vs. Ningbo Ligong Online | Shandong Homey vs. Healthcare Co | Shandong Homey vs. China Mobile Limited |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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