Correlation Between AVIC Fund and Jizhong Energy
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By analyzing existing cross correlation between AVIC Fund Management and Jizhong Energy Resources, you can compare the effects of market volatilities on AVIC Fund and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Jizhong Energy.
Diversification Opportunities for AVIC Fund and Jizhong Energy
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AVIC and Jizhong is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of AVIC Fund i.e., AVIC Fund and Jizhong Energy go up and down completely randomly.
Pair Corralation between AVIC Fund and Jizhong Energy
Assuming the 90 days trading horizon AVIC Fund is expected to generate 47.44 times less return on investment than Jizhong Energy. But when comparing it to its historical volatility, AVIC Fund Management is 7.16 times less risky than Jizhong Energy. It trades about 0.02 of its potential returns per unit of risk. Jizhong Energy Resources is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 540.00 in Jizhong Energy Resources on September 1, 2024 and sell it today you would earn a total of 83.00 from holding Jizhong Energy Resources or generate 15.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
AVIC Fund Management vs. Jizhong Energy Resources
Performance |
Timeline |
AVIC Fund Management |
Jizhong Energy Resources |
AVIC Fund and Jizhong Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AVIC Fund and Jizhong Energy
The main advantage of trading using opposite AVIC Fund and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy'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 |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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