Correlation Between Caihong Display and AVIC Fund
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By analyzing existing cross correlation between Caihong Display Devices and AVIC Fund Management, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and AVIC Fund.
Diversification Opportunities for Caihong Display and AVIC Fund
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caihong and AVIC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices 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 Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and AVIC Fund go up and down completely randomly.
Pair Corralation between Caihong Display and AVIC Fund
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 6.59 times more return on investment than AVIC Fund. However, Caihong Display is 6.59 times more volatile than AVIC Fund Management. It trades about 0.07 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 688.00 in Caihong Display Devices on October 18, 2024 and sell it today you would earn a total of 137.00 from holding Caihong Display Devices or generate 19.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. AVIC Fund Management
Performance |
| Timeline |
| Caihong Display Devices |
| AVIC Fund Management |
Caihong Display and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and AVIC Fund
The main advantage of trading using opposite Caihong Display and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Heilongjiang Publishing Media | Caihong Display vs. Mango Excellent Media | Caihong Display vs. Zhejiang Kingland Pipeline | Caihong Display vs. XinJiang GuoTong Pipeline |
| AVIC Fund vs. Runjian Communication Co | AVIC Fund vs. Tianjin Hi Tech Development | AVIC Fund vs. Caihong Display Devices | AVIC Fund vs. Unisplendour Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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