Correlation Between AVIC Fund and Guangdong Liantai
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By analyzing existing cross correlation between AVIC Fund Management and Guangdong Liantai Environmental, you can compare the effects of market volatilities on AVIC Fund and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Guangdong Liantai.
Diversification Opportunities for AVIC Fund and Guangdong Liantai
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between AVIC and Guangdong is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of AVIC Fund i.e., AVIC Fund and Guangdong Liantai go up and down completely randomly.
Pair Corralation between AVIC Fund and Guangdong Liantai
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.21 times more return on investment than Guangdong Liantai. However, AVIC Fund Management is 4.67 times less risky than Guangdong Liantai. It trades about 0.35 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about 0.02 per unit of risk. If you would invest 988.00 in AVIC Fund Management on October 14, 2024 and sell it today you would earn a total of 111.00 from holding AVIC Fund Management or generate 11.23% 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. Guangdong Liantai Environmenta
Performance |
| Timeline |
| AVIC Fund Management |
| Guangdong Liantai |
AVIC Fund and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Guangdong Liantai
The main advantage of trading using opposite AVIC Fund and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| AVIC Fund vs. Jinsanjiang Silicon Material | AVIC Fund vs. Liaoning Dingjide Petrochemical | AVIC Fund vs. Jilin Chemical Fibre | AVIC Fund vs. Shantou Wanshun Package |
| Guangdong Liantai vs. Shenzhen MYS Environmental | Guangdong Liantai vs. AVIC Fund Management | Guangdong Liantai vs. Rongan Property Co | Guangdong Liantai vs. Haoxiangni Jujube Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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