Correlation Between AVIC Fund and Ningbo Thermal
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By analyzing existing cross correlation between AVIC Fund Management and Ningbo Thermal Power, you can compare the effects of market volatilities on AVIC Fund and Ningbo Thermal 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 Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Ningbo Thermal.
Diversification Opportunities for AVIC Fund and Ningbo Thermal
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVIC and Ningbo is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power 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 Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of AVIC Fund i.e., AVIC Fund and Ningbo Thermal go up and down completely randomly.
Pair Corralation between AVIC Fund and Ningbo Thermal
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.27 times more return on investment than Ningbo Thermal. However, AVIC Fund Management is 3.69 times less risky than Ningbo Thermal. It trades about 0.32 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about -0.33 per unit of risk. If you would invest 1,050 in AVIC Fund Management on October 22, 2024 and sell it today you would earn a total of 42.00 from holding AVIC Fund Management or generate 4.0% 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. Ningbo Thermal Power
Performance |
| Timeline |
| AVIC Fund Management |
| Ningbo Thermal Power |
AVIC Fund and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Ningbo Thermal
The main advantage of trading using opposite AVIC Fund and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Ningbo Thermal 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 Ningbo Thermal will offset losses from the drop in Ningbo Thermal's long position.| AVIC Fund vs. Gan Yuan Foods | AVIC Fund vs. Qijing Machinery | AVIC Fund vs. Anji Foodstuff Co | AVIC Fund vs. Zhongjing Food Co |
| Ningbo Thermal vs. Cicc Fund Management | Ningbo Thermal vs. Heilongjiang Transport Development | Ningbo Thermal vs. Shanghai Yanpu Metal | Ningbo Thermal vs. Xinjiang Sailing Information |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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