Correlation Between AVIC Fund and Agricultural Bank
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By analyzing existing cross correlation between AVIC Fund Management and Agricultural Bank of, you can compare the effects of market volatilities on AVIC Fund and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Agricultural Bank.
Diversification Opportunities for AVIC Fund and Agricultural Bank
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVIC and Agricultural is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of AVIC Fund i.e., AVIC Fund and Agricultural Bank go up and down completely randomly.
Pair Corralation between AVIC Fund and Agricultural Bank
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.59 times more return on investment than Agricultural Bank. However, AVIC Fund Management is 1.69 times less risky than Agricultural Bank. It trades about 0.23 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.08 per unit of risk. If you would invest 1,067 in AVIC Fund Management on November 3, 2024 and sell it today you would earn a total of 32.00 from holding AVIC Fund Management or generate 3.0% 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. Agricultural Bank of
Performance |
| Timeline |
| AVIC Fund Management |
| Agricultural Bank |
AVIC Fund and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Agricultural Bank
The main advantage of trading using opposite AVIC Fund and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| AVIC Fund vs. Peoples Insurance of | AVIC Fund vs. Hainan Airlines Co | AVIC Fund vs. Ping An Insurance | AVIC Fund vs. Ligao Foods CoLtd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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