Correlation Between AVIC Fund and Dow Jones
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By analyzing existing cross correlation between AVIC Fund Management and Dow Jones Industrial, you can compare the effects of market volatilities on AVIC Fund and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Dow Jones.
Diversification Opportunities for AVIC Fund and Dow Jones
Weak diversification
The 3 months correlation between AVIC and Dow is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of AVIC Fund i.e., AVIC Fund and Dow Jones go up and down completely randomly.
Pair Corralation between AVIC Fund and Dow Jones
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.94 times more return on investment than Dow Jones. However, AVIC Fund Management is 1.06 times less risky than Dow Jones. It trades about 0.14 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of risk. If you would invest 827.00 in AVIC Fund Management on September 3, 2024 and sell it today you would earn a total of 178.00 from holding AVIC Fund Management or generate 21.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.18% |
| Values | Daily Returns |
AVIC Fund Management vs. Dow Jones Industrial
Performance |
| Timeline |
AVIC Fund and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
AVIC Fund Management
Pair trading matchups for AVIC Fund
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with AVIC Fund and Dow Jones
The main advantage of trading using opposite AVIC Fund and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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