Correlation Between AVIC Fund and Shanghai CEO
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By analyzing existing cross correlation between AVIC Fund Management and Shanghai CEO Environmental, you can compare the effects of market volatilities on AVIC Fund and Shanghai CEO 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 CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Shanghai CEO.
Diversification Opportunities for AVIC Fund and Shanghai CEO
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between AVIC and Shanghai is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of AVIC Fund i.e., AVIC Fund and Shanghai CEO go up and down completely randomly.
Pair Corralation between AVIC Fund and Shanghai CEO
Assuming the 90 days trading horizon AVIC Fund is expected to generate 10.46 times less return on investment than Shanghai CEO. But when comparing it to its historical volatility, AVIC Fund Management is 10.39 times less risky than Shanghai CEO. It trades about 0.16 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 780.00 in Shanghai CEO Environmental on August 25, 2024 and sell it today you would earn a total of 172.00 from holding Shanghai CEO Environmental or generate 22.05% 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. Shanghai CEO Environmental
Performance |
| Timeline |
| AVIC Fund Management |
| Shanghai CEO Environ |
AVIC Fund and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIC Fund and Shanghai CEO
The main advantage of trading using opposite AVIC Fund and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Shanghai CEO 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 CEO will offset losses from the drop in Shanghai CEO's long position.| AVIC Fund vs. Guangzhou Automobile Group | AVIC Fund vs. Weichai Heavy Machinery | AVIC Fund vs. Anhui Huilong Agricultural | AVIC Fund vs. Haima Automobile Group |
| Shanghai CEO vs. Zhongyin Babi Food | Shanghai CEO vs. New Hope Dairy | Shanghai CEO vs. Nexchip Semiconductor Corp | Shanghai CEO vs. Eastroc Beverage Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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