Correlation Between Kuangda Technology and AVIC Fund
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By analyzing existing cross correlation between Kuangda Technology Group and AVIC Fund Management, you can compare the effects of market volatilities on Kuangda Technology 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 Kuangda Technology with a short position of AVIC Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and AVIC Fund.
Diversification Opportunities for Kuangda Technology and AVIC Fund
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kuangda and AVIC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group 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 Kuangda Technology 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 Kuangda Technology Group 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 Kuangda Technology i.e., Kuangda Technology and AVIC Fund go up and down completely randomly.
Pair Corralation between Kuangda Technology and AVIC Fund
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 10.67 times more return on investment than AVIC Fund. However, Kuangda Technology is 10.67 times more volatile than AVIC Fund Management. It trades about 0.23 of its potential returns per unit of risk. AVIC Fund Management is currently generating about 0.12 per unit of risk. If you would invest 372.00 in Kuangda Technology Group on September 5, 2024 and sell it today you would earn a total of 219.00 from holding Kuangda Technology Group or generate 58.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kuangda Technology Group vs. AVIC Fund Management
Performance |
Timeline |
Kuangda Technology |
AVIC Fund Management |
Kuangda Technology and AVIC Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuangda Technology and AVIC Fund
The main advantage of trading using opposite Kuangda Technology and AVIC Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology 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.Kuangda Technology vs. Industrial and Commercial | Kuangda Technology vs. China Construction Bank | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Bank of China |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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