Correlation Between Dalian Thermal and AVIC Fund
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By analyzing existing cross correlation between Dalian Thermal Power and AVIC Fund Management, you can compare the effects of market volatilities on Dalian Thermal 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 Dalian Thermal with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and AVIC Fund.
Diversification Opportunities for Dalian Thermal and AVIC Fund
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dalian and AVIC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power 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 Dalian Thermal 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 Dalian Thermal Power 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 Dalian Thermal i.e., Dalian Thermal and AVIC Fund go up and down completely randomly.
Pair Corralation between Dalian Thermal and AVIC Fund
Assuming the 90 days trading horizon Dalian Thermal Power is expected to under-perform the AVIC Fund. In addition to that, Dalian Thermal is 4.77 times more volatile than AVIC Fund Management. It trades about -0.14 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.32 per unit of volatility. If you would invest 1,050 in AVIC Fund Management on October 22, 2024 and sell it today you would earn a total of 42.00 from holding AVIC Fund Management or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dalian Thermal Power vs. AVIC Fund Management
Performance |
| Timeline |
| Dalian Thermal Power |
| AVIC Fund Management |
Dalian Thermal and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Thermal and AVIC Fund
The main advantage of trading using opposite Dalian Thermal and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal 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.| Dalian Thermal vs. Sino Platinum Metals Co | Dalian Thermal vs. Zhejiang Yongjin Metal | Dalian Thermal vs. Western Metal Materials | Dalian Thermal vs. Rising Nonferrous Metals |
| AVIC Fund vs. Gan Yuan Foods | AVIC Fund vs. Qijing Machinery | AVIC Fund vs. Anji Foodstuff Co | AVIC Fund vs. Zhongjing Food 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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