Correlation Between AVIC Fund and National Silicon
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By analyzing existing cross correlation between AVIC Fund Management and National Silicon Industry, you can compare the effects of market volatilities on AVIC Fund and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and National Silicon.
Diversification Opportunities for AVIC Fund and National Silicon
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AVIC and National is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of AVIC Fund i.e., AVIC Fund and National Silicon go up and down completely randomly.
Pair Corralation between AVIC Fund and National Silicon
Assuming the 90 days trading horizon AVIC Fund is expected to generate 4.18 times less return on investment than National Silicon. But when comparing it to its historical volatility, AVIC Fund Management is 11.07 times less risky than National Silicon. It trades about 0.3 of its potential returns per unit of risk. National Silicon Industry is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,329 in National Silicon Industry on October 18, 2024 and sell it today you would earn a total of 568.00 from holding National Silicon Industry or generate 42.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVIC Fund Management vs. National Silicon Industry
Performance |
| Timeline |
| AVIC Fund Management |
| National Silicon Industry |
AVIC Fund and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and National Silicon
The main advantage of trading using opposite AVIC Fund and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon's long position.| AVIC Fund vs. Anhui Jianghuai Automobile | AVIC Fund vs. Vanfund Urban Investment | AVIC Fund vs. Hunan Investment Group | AVIC Fund vs. Chengdu Xingrong Investment |
| National Silicon vs. Ningxia Younglight Chemicals | National Silicon vs. Cicc Fund Management | National Silicon vs. Hengli Petrochemical Co | National Silicon vs. AVIC Fund Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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