Correlation Between AVIC Fund and Guangzhou Automobile
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By analyzing existing cross correlation between AVIC Fund Management and Guangzhou Automobile Group, you can compare the effects of market volatilities on AVIC Fund and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Guangzhou Automobile.
Diversification Opportunities for AVIC Fund and Guangzhou Automobile
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between AVIC and Guangzhou is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of AVIC Fund i.e., AVIC Fund and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between AVIC Fund and Guangzhou Automobile
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.39 times more return on investment than Guangzhou Automobile. However, AVIC Fund Management is 2.56 times less risky than Guangzhou Automobile. It trades about 0.11 of its potential returns per unit of risk. Guangzhou Automobile Group is currently generating about -0.02 per unit of risk. If you would invest 832.00 in AVIC Fund Management on August 25, 2024 and sell it today you would earn a total of 174.00 from holding AVIC Fund Management or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Guangzhou Automobile Group
Performance |
| Timeline |
| AVIC Fund Management |
| Guangzhou Automobile |
AVIC Fund and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Guangzhou Automobile
The main advantage of trading using opposite AVIC Fund and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile's long position.| AVIC Fund vs. Guangzhou Automobile Group | AVIC Fund vs. Weichai Heavy Machinery | AVIC Fund vs. Anhui Huilong Agricultural | AVIC Fund vs. Haima Automobile Group |
| Guangzhou Automobile vs. Lutian Machinery Co | Guangzhou Automobile vs. China Longyuan Power | Guangzhou Automobile vs. Changshu Tongrun Auto | Guangzhou Automobile vs. PetroChina Co Ltd |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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