Correlation Between AVIC Fund and Henan Lantian
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By analyzing existing cross correlation between AVIC Fund Management and Henan Lantian Gas, you can compare the effects of market volatilities on AVIC Fund and Henan Lantian 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 Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Henan Lantian.
Diversification Opportunities for AVIC Fund and Henan Lantian
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AVIC and Henan is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas 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 Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of AVIC Fund i.e., AVIC Fund and Henan Lantian go up and down completely randomly.
Pair Corralation between AVIC Fund and Henan Lantian
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.61 times more return on investment than Henan Lantian. However, AVIC Fund Management is 1.64 times less risky than Henan Lantian. It trades about 0.23 of its potential returns per unit of risk. Henan Lantian Gas is currently generating about -0.12 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. Henan Lantian Gas
Performance |
| Timeline |
| AVIC Fund Management |
| Henan Lantian Gas |
AVIC Fund and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Henan Lantian
The main advantage of trading using opposite AVIC Fund and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian's long position.| AVIC Fund vs. Fujian Wanchen Biotechnology | AVIC Fund vs. Maccura Biotechnology Co | AVIC Fund vs. China Sports Industry | AVIC Fund vs. Ningbo MedicalSystem Biotechnology |
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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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