Correlation Between China State and AIMA Technology
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By analyzing existing cross correlation between China State Construction and AIMA Technology Group, you can compare the effects of market volatilities on China State and AIMA Technology 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 China State with a short position of AIMA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and AIMA Technology.
Diversification Opportunities for China State and AIMA Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and AIMA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and AIMA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIMA Technology Group and China State 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 China State Construction are associated (or correlated) with AIMA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIMA Technology Group has no effect on the direction of China State i.e., China State and AIMA Technology go up and down completely randomly.
Pair Corralation between China State and AIMA Technology
Assuming the 90 days trading horizon China State Construction is expected to under-perform the AIMA Technology. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.08 times less risky than AIMA Technology. The stock trades about -0.04 of its potential returns per unit of risk. The AIMA Technology Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,651 in AIMA Technology Group on September 3, 2024 and sell it today you would earn a total of 58.00 from holding AIMA Technology Group or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. AIMA Technology Group
Performance |
| Timeline |
| China State Construction |
| AIMA Technology Group |
China State and AIMA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and AIMA Technology
The main advantage of trading using opposite China State and AIMA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, AIMA Technology 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 AIMA Technology will offset losses from the drop in AIMA Technology's long position.| China State vs. Citic Guoan Wine | China State vs. Shanghai Yanpu Metal | China State vs. Tongyu Communication | China State vs. Guangxi Wuzhou Communications |
| AIMA Technology vs. AVIC Fund Management | AIMA Technology vs. Everjoy Health Group | AIMA Technology vs. Lotus Health Group | AIMA Technology vs. CICC Fund Management |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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