Correlation Between AVIC Fund and Beijing Wantai
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By analyzing existing cross correlation between AVIC Fund Management and Beijing Wantai Biological, you can compare the effects of market volatilities on AVIC Fund and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Beijing Wantai.
Diversification Opportunities for AVIC Fund and Beijing Wantai
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AVIC and Beijing is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of AVIC Fund i.e., AVIC Fund and Beijing Wantai go up and down completely randomly.
Pair Corralation between AVIC Fund and Beijing Wantai
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.25 times more return on investment than Beijing Wantai. However, AVIC Fund Management is 3.98 times less risky than Beijing Wantai. It trades about 0.07 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.01 per unit of risk. If you would invest 884.00 in AVIC Fund Management on October 28, 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 | Weak |
| Accuracy | 92.34% |
| Values | Daily Returns |
AVIC Fund Management vs. Beijing Wantai Biological
Performance |
| Timeline |
| AVIC Fund Management |
| Beijing Wantai Biological |
AVIC Fund and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Beijing Wantai
The main advantage of trading using opposite AVIC Fund and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai'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 |
| Beijing Wantai vs. Zhongrun Resources Investment | Beijing Wantai vs. Western Metal Materials | Beijing Wantai vs. Jiangsu Yueda Investment | Beijing Wantai vs. Shenzhen Zqgame |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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