Correlation Between Air China and Xizi Clean
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By analyzing existing cross correlation between Air China Ltd and Xizi Clean Energy, you can compare the effects of market volatilities on Air China and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Xizi Clean.
Diversification Opportunities for Air China and Xizi Clean
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and Xizi is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Air China i.e., Air China and Xizi Clean go up and down completely randomly.
Pair Corralation between Air China and Xizi Clean
Assuming the 90 days trading horizon Air China Ltd is expected to generate 1.09 times more return on investment than Xizi Clean. However, Air China is 1.09 times more volatile than Xizi Clean Energy. It trades about 0.39 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.08 per unit of risk. If you would invest 750.00 in Air China Ltd on September 13, 2024 and sell it today you would earn a total of 136.00 from holding Air China Ltd or generate 18.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Xizi Clean Energy
Performance |
| Timeline |
| Air China |
| Xizi Clean Energy |
Air China and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Xizi Clean
The main advantage of trading using opposite Air China and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Air China vs. Shanghai Action Education | Air China vs. Heilongjiang Publishing Media | Air China vs. Qtone Education Group | Air China vs. Southern PublishingMedia Co |
| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. China Mobile Limited |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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