Correlation Between Hangzhou Guotai and Air China
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Air China Ltd, you can compare the effects of market volatilities on Hangzhou Guotai 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 Hangzhou Guotai with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Air China.
Diversification Opportunities for Hangzhou Guotai and Air China
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hangzhou and Air is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Hangzhou Guotai 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 Hangzhou Guotai Environmental 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 Hangzhou Guotai i.e., Hangzhou Guotai and Air China go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Air China
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 1.23 times more return on investment than Air China. However, Hangzhou Guotai is 1.23 times more volatile than Air China Ltd. It trades about 0.15 of its potential returns per unit of risk. Air China Ltd is currently generating about -0.12 per unit of risk. If you would invest 2,950 in Hangzhou Guotai Environmental on November 1, 2024 and sell it today you would earn a total of 220.00 from holding Hangzhou Guotai Environmental or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Air China Ltd
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Air China |
Hangzhou Guotai and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Air China
The main advantage of trading using opposite Hangzhou Guotai and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai 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.| Hangzhou Guotai vs. Industrial and Commercial | Hangzhou Guotai vs. Agricultural Bank of | Hangzhou Guotai vs. China Construction Bank | Hangzhou Guotai vs. Bank of China |
| Air China vs. Glodon Software Co | Air China vs. Chongqing Changan Automobile | Air China vs. Dareway Software Co | Air China vs. Dhc Software Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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