Correlation Between ZhongAn Online and Air New
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and Air New at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ZhongAn Online and Air New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and Air New Zealand, you can compare the effects of market volatilities on ZhongAn Online and Air New 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 ZhongAn Online with a short position of Air New. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and Air New.
Diversification Opportunities for ZhongAn Online and Air New
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZhongAn and Air is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and Air New Zealand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air New Zealand and ZhongAn Online 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 ZhongAn Online P are associated (or correlated) with Air New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air New Zealand has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and Air New go up and down completely randomly.
Pair Corralation between ZhongAn Online and Air New
Assuming the 90 days horizon ZhongAn Online P is expected to under-perform the Air New. In addition to that, ZhongAn Online is 1.15 times more volatile than Air New Zealand. It trades about 0.0 of its total potential returns per unit of risk. Air New Zealand is currently generating about 0.16 per unit of volatility. If you would invest 32.00 in Air New Zealand on October 22, 2024 and sell it today you would earn a total of 2.00 from holding Air New Zealand or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZhongAn Online P vs. Air New Zealand
Performance |
| Timeline |
| ZhongAn Online P |
| Air New Zealand |
ZhongAn Online and Air New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and Air New
The main advantage of trading using opposite ZhongAn Online and Air New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, Air New 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 New will offset losses from the drop in Air New's long position.| ZhongAn Online vs. Canadian Utilities Limited | ZhongAn Online vs. Delta Air Lines | ZhongAn Online vs. SOGECLAIR SA INH | ZhongAn Online vs. Algonquin Power Utilities |
| Air New vs. SENECA FOODS A | Air New vs. Cairo Communication SpA | Air New vs. Chengdu PUTIAN Telecommunications | Air New vs. CITIC Telecom International |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |