Correlation Between China Molybdenum and AVIC Fund
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By analyzing existing cross correlation between China Molybdenum Co and AVIC Fund Management, you can compare the effects of market volatilities on China Molybdenum 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 China Molybdenum with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Molybdenum and AVIC Fund.
Diversification Opportunities for China Molybdenum and AVIC Fund
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and AVIC is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Molybdenum Co 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 China Molybdenum 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 Molybdenum Co 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 China Molybdenum i.e., China Molybdenum and AVIC Fund go up and down completely randomly.
Pair Corralation between China Molybdenum and AVIC Fund
Assuming the 90 days trading horizon China Molybdenum Co is expected to generate 2.18 times more return on investment than AVIC Fund. However, China Molybdenum is 2.18 times more volatile than AVIC Fund Management. It trades about 0.29 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.29 per unit of risk. If you would invest 665.00 in China Molybdenum Co on November 1, 2024 and sell it today you would earn a total of 59.00 from holding China Molybdenum Co or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Molybdenum Co vs. AVIC Fund Management
Performance |
| Timeline |
| China Molybdenum |
| AVIC Fund Management |
China Molybdenum and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Molybdenum and AVIC Fund
The main advantage of trading using opposite China Molybdenum and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Molybdenum 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.| China Molybdenum vs. AVIC Fund Management | China Molybdenum vs. Western Metal Materials | China Molybdenum vs. Innovative Medical Management | China Molybdenum vs. Ningbo Jintian Copper |
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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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