Correlation Between AVCON Information and FSPG Hi
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By analyzing existing cross correlation between AVCON Information Tech and FSPG Hi Tech Co, you can compare the effects of market volatilities on AVCON Information and FSPG Hi 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 AVCON Information with a short position of FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and FSPG Hi.
Diversification Opportunities for AVCON Information and FSPG Hi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AVCON and FSPG is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech and AVCON Information 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 AVCON Information Tech are associated (or correlated) with FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of AVCON Information i.e., AVCON Information and FSPG Hi go up and down completely randomly.
Pair Corralation between AVCON Information and FSPG Hi
Assuming the 90 days trading horizon AVCON Information is expected to generate 1.74 times less return on investment than FSPG Hi. In addition to that, AVCON Information is 1.35 times more volatile than FSPG Hi Tech Co. It trades about 0.03 of its total potential returns per unit of risk. FSPG Hi Tech Co is currently generating about 0.06 per unit of volatility. If you would invest 462.00 in FSPG Hi Tech Co on September 20, 2024 and sell it today you would earn a total of 192.00 from holding FSPG Hi Tech Co or generate 41.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.58% |
Values | Daily Returns |
AVCON Information Tech vs. FSPG Hi Tech Co
Performance |
Timeline |
AVCON Information Tech |
FSPG Hi Tech |
AVCON Information and FSPG Hi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AVCON Information and FSPG Hi
The main advantage of trading using opposite AVCON Information and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.AVCON Information vs. Industrial and Commercial | AVCON Information vs. China Construction Bank | AVCON Information vs. Bank of China | AVCON Information vs. Agricultural Bank of |
FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Wanhua Chemical Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Shandong Gold Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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