Correlation Between China Southern and China State
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Southern Airlines and China State Construction, you can compare the effects of market volatilities on China Southern and China State 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 China Southern with a short position of China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Southern and China State.
Diversification Opportunities for China Southern and China State
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and China is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Southern Airlines and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction and China Southern 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 China Southern Airlines are associated (or correlated) with China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of China Southern i.e., China Southern and China State go up and down completely randomly.
Pair Corralation between China Southern and China State
Assuming the 90 days trading horizon China Southern Airlines is expected to generate 1.37 times more return on investment than China State. However, China Southern is 1.37 times more volatile than China State Construction. It trades about 0.43 of its potential returns per unit of risk. China State Construction is currently generating about 0.02 per unit of risk. If you would invest 612.00 in China Southern Airlines on September 13, 2024 and sell it today you would earn a total of 115.00 from holding China Southern Airlines or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Southern Airlines vs. China State Construction
Performance |
| Timeline |
| China Southern Airlines |
| China State Construction |
China Southern and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Southern and China State
The main advantage of trading using opposite China Southern and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Southern position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| China Southern vs. China State Construction | China Southern vs. Poly Real Estate | China Southern vs. China Vanke Co | China Southern vs. China Merchants Shekou |
| China State vs. Hangzhou Coco Healthcare | China State vs. Zhejiang Qianjiang Motorcycle | China State vs. Anhui Jianghuai Automobile | China State vs. Ningbo Fangzheng Automobile |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |