Correlation Between Ningxia Younglight and Air China
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Air China Ltd, you can compare the effects of market volatilities on Ningxia Younglight and Air China 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 Ningxia Younglight with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Air China.
Diversification Opportunities for Ningxia Younglight and Air China
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Air is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Ningxia Younglight 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 Ningxia Younglight Chemicals are associated (or correlated) with Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Air China go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Air China
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 2.39 times more return on investment than Air China. However, Ningxia Younglight is 2.39 times more volatile than Air China Ltd. It trades about -0.11 of its potential returns per unit of risk. Air China Ltd is currently generating about -0.44 per unit of risk. If you would invest 852.00 in Ningxia Younglight Chemicals on October 11, 2024 and sell it today you would lose (96.00) from holding Ningxia Younglight Chemicals or give up 11.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Air China Ltd
Performance |
| Timeline |
| Ningxia Younglight |
| Air China |
Ningxia Younglight and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Air China
The main advantage of trading using opposite Ningxia Younglight and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Air China 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 Air China will offset losses from the drop in Air China's long position.| Ningxia Younglight vs. Zoje Resources Investment | Ningxia Younglight vs. Shanghai Material Trading | Ningxia Younglight vs. Vanfund Urban Investment | Ningxia Younglight vs. Postal Savings Bank |
| Air China vs. CIMC Vehicles Co | Air China vs. Jinxiandai Information Industry | Air China vs. Longmaster Information Tech | Air China vs. Jiangsu Xinri E Vehicle |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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