Correlation Between Long Yuan and AVIC Fund
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By analyzing existing cross correlation between Long Yuan Construction and AVIC Fund Management, you can compare the effects of market volatilities on Long Yuan 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 Long Yuan with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and AVIC Fund.
Diversification Opportunities for Long Yuan and AVIC Fund
Very weak diversification
The 3 months correlation between Long and AVIC is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction 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 Long Yuan 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 Long Yuan Construction 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 Long Yuan i.e., Long Yuan and AVIC Fund go up and down completely randomly.
Pair Corralation between Long Yuan and AVIC Fund
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the AVIC Fund. In addition to that, Long Yuan is 6.12 times more volatile than AVIC Fund Management. It trades about -0.01 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.45 per unit of volatility. If you would invest 1,004 in AVIC Fund Management on September 28, 2024 and sell it today you would earn a total of 49.00 from holding AVIC Fund Management or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. AVIC Fund Management
Performance |
| Timeline |
| Long Yuan Construction |
| AVIC Fund Management |
Long Yuan and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and AVIC Fund
The main advantage of trading using opposite Long Yuan and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan 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.| Long Yuan vs. Ming Yang Smart | Long Yuan vs. 159681 | Long Yuan vs. 159005 | Long Yuan vs. Loctek Ergonomic Technology |
| AVIC Fund vs. Kunshan Guoli Electronic | AVIC Fund vs. YiDong Electronics Technology | AVIC Fund vs. Eyebright Medical Technology | AVIC Fund vs. Unigroup Guoxin Microelectronics |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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