Correlation Between Poly Real and China Southern
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By analyzing existing cross correlation between Poly Real Estate and China Southern Airlines, you can compare the effects of market volatilities on Poly Real and China Southern 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 Poly Real with a short position of China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and China Southern.
Diversification Opportunities for Poly Real and China Southern
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Poly and China is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and China Southern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern Airlines and Poly Real 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 Poly Real Estate are associated (or correlated) with China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern Airlines has no effect on the direction of Poly Real i.e., Poly Real and China Southern go up and down completely randomly.
Pair Corralation between Poly Real and China Southern
Assuming the 90 days trading horizon Poly Real is expected to generate 2.48 times less return on investment than China Southern. In addition to that, Poly Real is 1.65 times more volatile than China Southern Airlines. It trades about 0.02 of its total potential returns per unit of risk. China Southern Airlines is currently generating about 0.06 per unit of volatility. If you would invest 576.00 in China Southern Airlines on September 14, 2024 and sell it today you would earn a total of 143.00 from holding China Southern Airlines or generate 24.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Poly Real Estate vs. China Southern Airlines
Performance |
| Timeline |
| Poly Real Estate |
| China Southern Airlines |
Poly Real and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and China Southern
The main advantage of trading using opposite Poly Real and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, China Southern 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 Southern will offset losses from the drop in China Southern's long position.| Poly Real vs. China Life Insurance | Poly Real vs. Cinda Securities Co | Poly Real vs. Piotech Inc A | Poly Real vs. Dongxing Sec Co |
| China Southern vs. China State Construction | China Southern vs. Poly Real Estate | China Southern vs. China Vanke Co | China Southern vs. China Merchants Shekou |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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