Correlation Between Soyea Technology and Air China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Soyea Technology Co and Air China Ltd, you can compare the effects of market volatilities on Soyea Technology 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 Soyea Technology with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and Air China.
Diversification Opportunities for Soyea Technology and Air China
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Soyea and Air is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Soyea 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 Soyea Technology Co 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 Soyea Technology i.e., Soyea Technology and Air China go up and down completely randomly.
Pair Corralation between Soyea Technology and Air China
Assuming the 90 days trading horizon Soyea Technology Co is expected to under-perform the Air China. In addition to that, Soyea Technology is 1.24 times more volatile than Air China Ltd. It trades about -0.06 of its total potential returns per unit of risk. Air China Ltd is currently generating about -0.03 per unit of volatility. If you would invest 784.00 in Air China Ltd on October 26, 2024 and sell it today you would lose (32.00) from holding Air China Ltd or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soyea Technology Co vs. Air China Ltd
Performance |
| Timeline |
| Soyea Technology |
| Air China |
Soyea Technology and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and Air China
The main advantage of trading using opposite Soyea Technology and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology 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.| Soyea Technology vs. Agricultural Bank of | Soyea Technology vs. Industrial and Commercial | Soyea Technology vs. Bank of China | Soyea Technology vs. China Construction Bank |
| Air China vs. Zhuhai Comleader Information | Air China vs. Soyea Technology Co | Air China vs. Guangdong TianYiMa Information | Air China vs. Holitech Technology 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |