Correlation Between Shanghai Laimu and AVIC Fund
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By analyzing existing cross correlation between Shanghai Laimu Electronics and AVIC Fund Management, you can compare the effects of market volatilities on Shanghai Laimu 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 Shanghai Laimu with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Laimu and AVIC Fund.
Diversification Opportunities for Shanghai Laimu and AVIC Fund
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and AVIC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Laimu Electronics 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 Shanghai Laimu 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 Laimu Electronics 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 Shanghai Laimu i.e., Shanghai Laimu and AVIC Fund go up and down completely randomly.
Pair Corralation between Shanghai Laimu and AVIC Fund
Assuming the 90 days trading horizon Shanghai Laimu Electronics is expected to generate 7.15 times more return on investment than AVIC Fund. However, Shanghai Laimu is 7.15 times more volatile than AVIC Fund Management. It trades about 0.09 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.39 per unit of risk. If you would invest 773.00 in Shanghai Laimu Electronics on September 16, 2024 and sell it today you would earn a total of 36.00 from holding Shanghai Laimu Electronics or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Laimu Electronics vs. AVIC Fund Management
Performance |
| Timeline |
| Shanghai Laimu Elect |
| AVIC Fund Management |
Shanghai Laimu and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Laimu and AVIC Fund
The main advantage of trading using opposite Shanghai Laimu and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Laimu 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.| Shanghai Laimu vs. AVIC Fund Management | Shanghai Laimu vs. Der International Home | Shanghai Laimu vs. Nanxing Furniture Machinery | Shanghai Laimu vs. Huaxia Fund Management |
| AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited | AVIC Fund vs. China Construction Bank |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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