Correlation Between Huasi Agricultural and Air China
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By analyzing existing cross correlation between Huasi Agricultural Development and Air China Ltd, you can compare the effects of market volatilities on Huasi Agricultural 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 Huasi Agricultural with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Air China.
Diversification Opportunities for Huasi Agricultural and Air China
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huasi and Air is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Huasi Agricultural 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 Huasi Agricultural Development 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 Huasi Agricultural i.e., Huasi Agricultural and Air China go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Air China
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 1.71 times more return on investment than Air China. However, Huasi Agricultural is 1.71 times more volatile than Air China Ltd. It trades about 0.0 of its potential returns per unit of risk. Air China Ltd is currently generating about -0.03 per unit of risk. If you would invest 502.00 in Huasi Agricultural Development on October 16, 2024 and sell it today you would lose (112.00) from holding Huasi Agricultural Development or give up 22.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Air China Ltd
Performance |
| Timeline |
| Huasi Agricultural |
| Air China |
Huasi Agricultural and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Air China
The main advantage of trading using opposite Huasi Agricultural and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural 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.| Huasi Agricultural vs. Shenyang Huitian Thermal | Huasi Agricultural vs. Jonjee Hi tech Industrial | Huasi Agricultural vs. Ningbo Jintian Copper | Huasi Agricultural vs. Guangdong Jingyi Metal |
| Air China vs. Jinlong Machinery Electronic | Air China vs. Xinya Electronic Co | Air China vs. Beijing YanDong MicroElectronic | Air China vs. Ningbo Fangzheng Automobile |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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