Correlation Between Time Publishing and Air China
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By analyzing existing cross correlation between Time Publishing and and Air China Ltd, you can compare the effects of market volatilities on Time Publishing 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 Time Publishing with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Time Publishing and Air China.
Diversification Opportunities for Time Publishing and Air China
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Time and Air is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Time Publishing and and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Time Publishing 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 Time Publishing and 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 Time Publishing i.e., Time Publishing and Air China go up and down completely randomly.
Pair Corralation between Time Publishing and Air China
Assuming the 90 days trading horizon Time Publishing and is expected to under-perform the Air China. But the stock apears to be less risky and, when comparing its historical volatility, Time Publishing and is 1.05 times less risky than Air China. The stock trades about -0.05 of its potential returns per unit of risk. The Air China Ltd is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 701.00 in Air China Ltd on October 14, 2024 and sell it today you would earn a total of 42.00 from holding Air China Ltd or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Time Publishing and vs. Air China Ltd
Performance |
| Timeline |
| Time Publishing |
| Air China |
Time Publishing and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Time Publishing and Air China
The main advantage of trading using opposite Time Publishing and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Time Publishing 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.| Time Publishing vs. Do Fluoride Chemicals Co | Time Publishing vs. Western Metal Materials | Time Publishing vs. Caihong Display Devices | Time Publishing vs. Jilin OLED Material |
| Air China vs. Jiangxi Hengda Hi Tech | Air China vs. Duzhe Publishing Media | Air China vs. Time Publishing and | Air China vs. Jinling Hotel Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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