Correlation Between Gansu Jiu and Air China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Air China Ltd, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Air China.
Diversification Opportunities for Gansu Jiu and Air China
Weak diversification
The 3 months correlation between Gansu and Air is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Gansu Jiu 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 Gansu Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and Air China go up and down completely randomly.
Pair Corralation between Gansu Jiu and Air China
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 4.31 times less return on investment than Air China. In addition to that, Gansu Jiu is 1.73 times more volatile than Air China Ltd. It trades about 0.01 of its total potential returns per unit of risk. Air China Ltd is currently generating about 0.09 per unit of volatility. If you would invest 704.00 in Air China Ltd on October 24, 2024 and sell it today you would earn a total of 76.00 from holding Air China Ltd or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Air China Ltd
Performance |
| Timeline |
| Gansu Jiu Steel |
| Air China |
Gansu Jiu and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Air China
The main advantage of trading using opposite Gansu Jiu and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. Sichuan Hebang Biotechnology | Gansu Jiu vs. Guilin Seamild Foods | Gansu Jiu vs. HaiXin Foods Co | Gansu Jiu vs. Zhongjing Food Co |
| Air China vs. JCHX Mining Management | Air China vs. Runjian Communication Co | Air China vs. Shanghai Shibei Hi Tech | Air China vs. Jinhui Mining 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |