Correlation Between Henan Lantian and AVIC Fund
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Lantian Gas and AVIC Fund Management, you can compare the effects of market volatilities on Henan Lantian 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 Henan Lantian with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and AVIC Fund.
Diversification Opportunities for Henan Lantian and AVIC Fund
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Henan and AVIC is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas 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 Henan Lantian 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 Henan Lantian Gas 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 Henan Lantian i.e., Henan Lantian and AVIC Fund go up and down completely randomly.
Pair Corralation between Henan Lantian and AVIC Fund
Assuming the 90 days trading horizon Henan Lantian Gas is expected to under-perform the AVIC Fund. In addition to that, Henan Lantian is 1.64 times more volatile than AVIC Fund Management. It trades about -0.12 of its total potential returns per unit of risk. AVIC Fund Management is currently generating about 0.23 per unit of volatility. If you would invest 1,067 in AVIC Fund Management on November 3, 2024 and sell it today you would earn a total of 32.00 from holding AVIC Fund Management or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Lantian Gas vs. AVIC Fund Management
Performance |
| Timeline |
| Henan Lantian Gas |
| AVIC Fund Management |
Henan Lantian and AVIC Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and AVIC Fund
The main advantage of trading using opposite Henan Lantian and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian 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.| Henan Lantian vs. Wintao Communications Co | Henan Lantian vs. Tongyu Communication | Henan Lantian vs. Beijing Bewinner Communications | Henan Lantian vs. Bank of Communications |
| AVIC Fund vs. Fujian Wanchen Biotechnology | AVIC Fund vs. Maccura Biotechnology Co | AVIC Fund vs. China Sports Industry | AVIC Fund vs. Ningbo MedicalSystem Biotechnology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |