Correlation Between Shanghai Rongtai and AVCON Information
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By analyzing existing cross correlation between Shanghai Rongtai Health and AVCON Information Tech, you can compare the effects of market volatilities on Shanghai Rongtai 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 Shanghai Rongtai with a short position of AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and AVCON Information.
Diversification Opportunities for Shanghai Rongtai and AVCON Information
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and AVCON is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health 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 Shanghai Rongtai 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 Shanghai Rongtai Health 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 Shanghai Rongtai i.e., Shanghai Rongtai and AVCON Information go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and AVCON Information
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to under-perform the AVCON Information. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Rongtai Health is 1.47 times less risky than AVCON Information. The stock trades about -0.01 of its potential returns per unit of risk. The AVCON Information Tech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 403.00 in AVCON Information Tech on September 3, 2024 and sell it today you would earn a total of 80.00 from holding AVCON Information Tech or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. AVCON Information Tech
Performance |
| Timeline |
| Shanghai Rongtai Health |
| AVCON Information Tech |
Shanghai Rongtai and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and AVCON Information
The main advantage of trading using opposite Shanghai Rongtai and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai 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.| Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. China Mobile Limited | Shanghai Rongtai vs. Industrial and Commercial | Shanghai Rongtai vs. China Life Insurance |
| AVCON Information vs. Agricultural Bank of | AVCON Information vs. China Construction Bank | AVCON Information vs. Postal Savings Bank | AVCON Information vs. Bank of Communications |
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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