Correlation Between Jinlong Machinery and Air China
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By analyzing existing cross correlation between Jinlong Machinery Electronic and Air China Ltd, you can compare the effects of market volatilities on Jinlong Machinery 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 Jinlong Machinery with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinlong Machinery and Air China.
Diversification Opportunities for Jinlong Machinery and Air China
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinlong and Air is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jinlong Machinery Electronic and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Jinlong Machinery 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 Jinlong Machinery Electronic 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 Jinlong Machinery i.e., Jinlong Machinery and Air China go up and down completely randomly.
Pair Corralation between Jinlong Machinery and Air China
Assuming the 90 days trading horizon Jinlong Machinery Electronic is expected to under-perform the Air China. In addition to that, Jinlong Machinery is 1.43 times more volatile than Air China Ltd. It trades about -0.17 of its total potential returns per unit of risk. Air China Ltd is currently generating about -0.1 per unit of volatility. If you would invest 828.00 in Air China Ltd on October 30, 2024 and sell it today you would lose (80.00) from holding Air China Ltd or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinlong Machinery Electronic vs. Air China Ltd
Performance |
| Timeline |
| Jinlong Machinery |
| Air China |
Jinlong Machinery and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinlong Machinery and Air China
The main advantage of trading using opposite Jinlong Machinery and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinlong Machinery 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.| Jinlong Machinery vs. Jiangsu Yanghe Brewery | Jinlong Machinery vs. Chison Medical Technologies | Jinlong Machinery vs. Tinavi Medical Technologies | Jinlong Machinery vs. Zhongzhu Medical Holdings |
| Air China vs. Innovative Medical Management | Air China vs. Sichuan Yahua Industrial | Air China vs. Hainan Airlines Co | Air China vs. CICC Fund Management |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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