Correlation Between Jiangsu Yueda and AVCON Information
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By analyzing existing cross correlation between Jiangsu Yueda Investment and AVCON Information Tech, you can compare the effects of market volatilities on Jiangsu Yueda and AVCON Information 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 Jiangsu Yueda with a short position of AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and AVCON Information.
Diversification Opportunities for Jiangsu Yueda and AVCON Information
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and AVCON is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and AVCON Information go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and AVCON Information
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 1.9 times less return on investment than AVCON Information. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 1.36 times less risky than AVCON Information. It trades about 0.02 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 418.00 in AVCON Information Tech on September 12, 2024 and sell it today you would earn a total of 72.00 from holding AVCON Information Tech or generate 17.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. AVCON Information Tech
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| AVCON Information Tech |
Jiangsu Yueda and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and AVCON Information
The main advantage of trading using opposite Jiangsu Yueda and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Jiangsu Yueda vs. Agricultural Bank of | Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. Bank of China | Jiangsu Yueda vs. PetroChina Co Ltd |
| AVCON Information vs. Gansu Jiu Steel | AVCON Information vs. Shandong Mining Machinery | AVCON Information vs. Aba Chemicals Corp | AVCON Information vs. BlueFocus Communication Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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