Correlation Between CIMC Vehicles and Air China
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By analyzing existing cross correlation between CIMC Vehicles Co and Air China Ltd, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Air China.
Diversification Opportunities for CIMC Vehicles and Air China
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between CIMC and Air is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and CIMC Vehicles 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 CIMC Vehicles Co 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 CIMC Vehicles i.e., CIMC Vehicles and Air China go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Air China
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 1.56 times more return on investment than Air China. However, CIMC Vehicles is 1.56 times more volatile than Air China Ltd. It trades about 0.02 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 790.00 in CIMC Vehicles Co on October 11, 2024 and sell it today you would earn a total of 89.00 from holding CIMC Vehicles Co or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Air China Ltd
Performance |
| Timeline |
| CIMC Vehicles |
| Air China |
CIMC Vehicles and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Air China
The main advantage of trading using opposite CIMC Vehicles and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.| CIMC Vehicles vs. SUNSEA Telecommunications Co | CIMC Vehicles vs. Nanjing Putian Telecommunications | CIMC Vehicles vs. Southern PublishingMedia Co | CIMC Vehicles vs. Ningbo Ligong Online |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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