Correlation Between Air China and Guangzhou KingTeller
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By analyzing existing cross correlation between Air China Ltd and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Air China and Guangzhou KingTeller 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 Air China with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Guangzhou KingTeller.
Diversification Opportunities for Air China and Guangzhou KingTeller
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and Guangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Air China 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 Air China Ltd are associated (or correlated) with Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Air China i.e., Air China and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Air China and Guangzhou KingTeller
Assuming the 90 days trading horizon Air China Ltd is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Air China Ltd is 2.04 times less risky than Guangzhou KingTeller. The stock trades about -0.08 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 510.00 in Guangzhou KingTeller Technology on October 24, 2024 and sell it today you would lose (27.00) from holding Guangzhou KingTeller Technology or give up 5.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Air China |
| Guangzhou KingTeller |
Air China and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Guangzhou KingTeller
The main advantage of trading using opposite Air China and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| 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 |
| Guangzhou KingTeller vs. Panda Financial Holding | Guangzhou KingTeller vs. Southern PublishingMedia Co | Guangzhou KingTeller vs. Mango Excellent Media | Guangzhou KingTeller vs. Chengdu B ray Media |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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