Correlation Between Tianjin Hi and AVIC Fund
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By analyzing existing cross correlation between Tianjin Hi Tech Development and AVIC Fund Management, you can compare the effects of market volatilities on Tianjin Hi and AVIC Fund 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 Tianjin Hi with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and AVIC Fund.
Diversification Opportunities for Tianjin Hi and AVIC Fund
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tianjin and AVIC is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and AVIC Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVIC Fund Management and Tianjin Hi 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 Tianjin Hi Tech Development are associated (or correlated) with AVIC Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVIC Fund Management has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and AVIC Fund go up and down completely randomly.
Pair Corralation between Tianjin Hi and AVIC Fund
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 8.17 times more return on investment than AVIC Fund. However, Tianjin Hi is 8.17 times more volatile than AVIC Fund Management. It trades about 0.11 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.2 per unit of risk. If you would invest 188.00 in Tianjin Hi Tech Development on October 18, 2024 and sell it today you would earn a total of 92.00 from holding Tianjin Hi Tech Development or generate 48.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Hi Tech Development vs. AVIC Fund Management
Performance |
Timeline |
Tianjin Hi Tech |
AVIC Fund Management |
Tianjin Hi and AVIC Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Hi and AVIC Fund
The main advantage of trading using opposite Tianjin Hi and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, AVIC Fund 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 AVIC Fund will offset losses from the drop in AVIC Fund's long position.Tianjin Hi vs. HaiXin Foods Co | Tianjin Hi vs. Harbin Hatou Investment | Tianjin Hi vs. Zhongrun Resources Investment | Tianjin Hi vs. Great Sun Foods Co |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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