Correlation Between Hongrun Construction and Air China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hongrun Construction Group and Air China Ltd, you can compare the effects of market volatilities on Hongrun Construction 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 Hongrun Construction with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Air China.
Diversification Opportunities for Hongrun Construction and Air China
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hongrun and Air is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Hongrun Construction 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 Hongrun Construction Group 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 Hongrun Construction i.e., Hongrun Construction and Air China go up and down completely randomly.
Pair Corralation between Hongrun Construction and Air China
Assuming the 90 days trading horizon Hongrun Construction Group is expected to generate 1.76 times more return on investment than Air China. However, Hongrun Construction is 1.76 times more volatile than Air China Ltd. It trades about 0.17 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 481.00 in Hongrun Construction Group on October 11, 2024 and sell it today you would earn a total of 54.00 from holding Hongrun Construction Group or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hongrun Construction Group vs. Air China Ltd
Performance |
| Timeline |
| Hongrun Construction |
| Air China |
Hongrun Construction and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Air China
The main advantage of trading using opposite Hongrun Construction and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction 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.| Hongrun Construction vs. Aba Chemicals Corp | Hongrun Construction vs. Hunan TV Broadcast | Hongrun Construction vs. Zhongshan Broad Ocean Motor | Hongrun Construction vs. Chongqing Road Bridge |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |