Correlation Between Jiujiang Shanshui and Air China
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Air China Ltd, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Air China.
Diversification Opportunities for Jiujiang Shanshui and Air China
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiujiang and Air is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Air China go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Air China
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 1.27 times more return on investment than Air China. However, Jiujiang Shanshui is 1.27 times more volatile than Air China Ltd. It trades about -0.01 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 1,913 in Jiujiang Shanshui Technology on October 16, 2024 and sell it today you would lose (454.00) from holding Jiujiang Shanshui Technology or give up 23.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Air China Ltd
Performance |
| Timeline |
| Jiujiang Shanshui |
| Air China |
Jiujiang Shanshui and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Air China
The main advantage of trading using opposite Jiujiang Shanshui and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Shenzhen Glory Medical | Jiujiang Shanshui vs. Xiangyu Medical Co | Jiujiang Shanshui vs. Qingdao Haier Biomedical | Jiujiang Shanshui vs. Haima Automobile Group |
| Air China vs. Huasi Agricultural Development | Air China vs. Fiberhome Telecommunication Technologies | Air China vs. Weichai Heavy Machinery | Air China vs. Nanxing Furniture Machinery |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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