Correlation Between China Express and Saurer Intelligent
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By analyzing existing cross correlation between China Express Airlines and Saurer Intelligent Technology, you can compare the effects of market volatilities on China Express and Saurer Intelligent 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 China Express with a short position of Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and Saurer Intelligent.
Diversification Opportunities for China Express and Saurer Intelligent
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Saurer is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent and China Express 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 China Express Airlines are associated (or correlated) with Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of China Express i.e., China Express and Saurer Intelligent go up and down completely randomly.
Pair Corralation between China Express and Saurer Intelligent
Assuming the 90 days trading horizon China Express Airlines is expected to under-perform the Saurer Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, China Express Airlines is 3.12 times less risky than Saurer Intelligent. The stock trades about -0.17 of its potential returns per unit of risk. The Saurer Intelligent Technology is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 219.00 in Saurer Intelligent Technology on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Saurer Intelligent Technology or generate 51.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. Saurer Intelligent Technology
Performance |
| Timeline |
| China Express Airlines |
| Saurer Intelligent |
China Express and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and Saurer Intelligent
The main advantage of trading using opposite China Express and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| China Express vs. Agricultural Bank of | China Express vs. Industrial and Commercial | China Express vs. Bank of China | China Express vs. PetroChina Co Ltd |
| Saurer Intelligent vs. Agricultural Bank of | Saurer Intelligent vs. Industrial and Commercial | Saurer Intelligent vs. Bank of China | Saurer Intelligent vs. PetroChina Co Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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