Correlation Between AVIC Fund and Huafa Industrial
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By analyzing existing cross correlation between AVIC Fund Management and Huafa Industrial Co, you can compare the effects of market volatilities on AVIC Fund and Huafa Industrial 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 AVIC Fund with a short position of Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Huafa Industrial.
Diversification Opportunities for AVIC Fund and Huafa Industrial
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between AVIC and Huafa is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial and AVIC Fund 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 AVIC Fund Management are associated (or correlated) with Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of AVIC Fund i.e., AVIC Fund and Huafa Industrial go up and down completely randomly.
Pair Corralation between AVIC Fund and Huafa Industrial
Assuming the 90 days trading horizon AVIC Fund Management is expected to generate 0.29 times more return on investment than Huafa Industrial. However, AVIC Fund Management is 3.4 times less risky than Huafa Industrial. It trades about 0.45 of its potential returns per unit of risk. Huafa Industrial Co is currently generating about -0.32 per unit of risk. If you would invest 1,006 in AVIC Fund Management on September 25, 2024 and sell it today you would earn a total of 44.00 from holding AVIC Fund Management or generate 4.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AVIC Fund Management vs. Huafa Industrial Co
Performance |
Timeline |
AVIC Fund Management |
Huafa Industrial |
AVIC Fund and Huafa Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AVIC Fund and Huafa Industrial
The main advantage of trading using opposite AVIC Fund and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Huafa Industrial 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
Huafa Industrial vs. Haima Automobile Group | Huafa Industrial vs. Songz Automobile Air | Huafa Industrial vs. AVIC Fund Management | Huafa Industrial vs. Tsingtao Brewery Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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