Correlation Between AVIC Fund and Shanghai Laimu
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By analyzing existing cross correlation between AVIC Fund Management and Shanghai Laimu Electronics, you can compare the effects of market volatilities on AVIC Fund and Shanghai Laimu 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 Shanghai Laimu. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Shanghai Laimu.
Diversification Opportunities for AVIC Fund and Shanghai Laimu
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVIC and Shanghai is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Shanghai Laimu Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Laimu Elect 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 Shanghai Laimu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Laimu Elect has no effect on the direction of AVIC Fund i.e., AVIC Fund and Shanghai Laimu go up and down completely randomly.
Pair Corralation between AVIC Fund and Shanghai Laimu
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.13 times more return on investment than Shanghai Laimu. However, AVIC Fund Management is 7.6 times less risky than Shanghai Laimu. It trades about 0.32 of its potential returns per unit of risk. Shanghai Laimu Electronics is currently generating about -0.01 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. Shanghai Laimu Electronics
Performance |
| Timeline |
| AVIC Fund Management |
| Shanghai Laimu Elect |
AVIC Fund and Shanghai Laimu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Shanghai Laimu
The main advantage of trading using opposite AVIC Fund and Shanghai Laimu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Shanghai Laimu 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 Shanghai Laimu will offset losses from the drop in Shanghai Laimu'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 |
| Shanghai Laimu vs. HanS Laser Tech | Shanghai Laimu vs. Kailong High Technology | Shanghai Laimu vs. Montage Technology Co | Shanghai Laimu vs. Silkroad Visual Technology |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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