Correlation Between Citic Offshore and AVIC Fund
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By analyzing existing cross correlation between Citic Offshore Helicopter and AVIC Fund Management, you can compare the effects of market volatilities on Citic Offshore 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 Citic Offshore with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and AVIC Fund.
Diversification Opportunities for Citic Offshore and AVIC Fund
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citic and AVIC is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter 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 Citic Offshore 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 Citic Offshore Helicopter 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 Citic Offshore i.e., Citic Offshore and AVIC Fund go up and down completely randomly.
Pair Corralation between Citic Offshore and AVIC Fund
Assuming the 90 days trading horizon Citic Offshore Helicopter is expected to generate 11.6 times more return on investment than AVIC Fund. However, Citic Offshore is 11.6 times more volatile than AVIC Fund Management. It trades about 0.08 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.33 per unit of risk. If you would invest 2,035 in Citic Offshore Helicopter on October 5, 2024 and sell it today you would earn a total of 408.00 from holding Citic Offshore Helicopter or generate 20.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Citic Offshore Helicopter vs. AVIC Fund Management
Performance |
Timeline |
Citic Offshore Helicopter |
AVIC Fund Management |
Citic Offshore and AVIC Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citic Offshore and AVIC Fund
The main advantage of trading using opposite Citic Offshore and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore 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.Citic Offshore vs. Industrial and Commercial | Citic Offshore vs. China Construction Bank | Citic Offshore vs. Agricultural Bank of | Citic Offshore vs. Bank of China |
AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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