Correlation Between AVIC Fund and Chengdu B
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By analyzing existing cross correlation between AVIC Fund Management and Chengdu B ray Media, you can compare the effects of market volatilities on AVIC Fund and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Chengdu B.
Diversification Opportunities for AVIC Fund and Chengdu B
Modest diversification
The 3 months correlation between AVIC and Chengdu is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of AVIC Fund i.e., AVIC Fund and Chengdu B go up and down completely randomly.
Pair Corralation between AVIC Fund and Chengdu B
Assuming the 90 days trading horizon AVIC Fund is expected to generate 5.38 times less return on investment than Chengdu B. But when comparing it to its historical volatility, AVIC Fund Management is 13.34 times less risky than Chengdu B. It trades about 0.21 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 475.00 in Chengdu B ray Media on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Chengdu B ray Media or generate 4.63% 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. Chengdu B ray Media
Performance |
| Timeline |
| AVIC Fund Management |
| Chengdu B ray |
AVIC Fund and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Chengdu B
The main advantage of trading using opposite AVIC Fund and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B'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 |
| Chengdu B vs. Cambricon Technologies Corp | Chengdu B vs. Loongson Technology Corp | Chengdu B vs. Shenzhen Fortune Trend | Chengdu B vs. Chongqing Road Bridge |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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