Correlation Between AVIC Fund and Railway Signal
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By analyzing existing cross correlation between AVIC Fund Management and Railway Signal Communication, you can compare the effects of market volatilities on AVIC Fund and Railway Signal 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 Railway Signal. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Railway Signal.
Diversification Opportunities for AVIC Fund and Railway Signal
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AVIC and Railway is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Railway Signal Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Railway Signal Commu 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 Railway Signal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Railway Signal Commu has no effect on the direction of AVIC Fund i.e., AVIC Fund and Railway Signal go up and down completely randomly.
Pair Corralation between AVIC Fund and Railway Signal
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.35 times more return on investment than Railway Signal. However, AVIC Fund Management is 2.86 times less risky than Railway Signal. It trades about 0.25 of its potential returns per unit of risk. Railway Signal Communication is currently generating about -0.16 per unit of risk. If you would invest 1,004 in AVIC Fund Management on September 13, 2024 and sell it today you would earn a total of 22.00 from holding AVIC Fund Management or generate 2.19% 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. Railway Signal Communication
Performance |
| Timeline |
| AVIC Fund Management |
| Railway Signal Commu |
AVIC Fund and Railway Signal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Railway Signal
The main advantage of trading using opposite AVIC Fund and Railway Signal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Railway Signal 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 Railway Signal will offset losses from the drop in Railway Signal's long position.| AVIC Fund vs. China Sports Industry | AVIC Fund vs. Jahen Household Products | AVIC Fund vs. Duzhe Publishing Media | AVIC Fund vs. Guangzhou Seagull Kitchen |
| Railway Signal vs. Ming Yang Smart | Railway Signal vs. 159681 | Railway Signal vs. 159005 | Railway Signal vs. Loctek Ergonomic 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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