Correlation Between Air China and Elite Color
Specify exactly 2 symbols:
By analyzing existing cross correlation between Air China Ltd and Elite Color Environmental, you can compare the effects of market volatilities on Air China and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Elite Color.
Diversification Opportunities for Air China and Elite Color
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Air and Elite is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Air China i.e., Air China and Elite Color go up and down completely randomly.
Pair Corralation between Air China and Elite Color
Assuming the 90 days trading horizon Air China Ltd is expected to generate 1.07 times more return on investment than Elite Color. However, Air China is 1.07 times more volatile than Elite Color Environmental. It trades about 0.05 of its potential returns per unit of risk. Elite Color Environmental is currently generating about -0.22 per unit of risk. If you would invest 794.00 in Air China Ltd on September 27, 2024 and sell it today you would earn a total of 16.00 from holding Air China Ltd or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Elite Color Environmental
Performance |
| Timeline |
| Air China |
| Elite Color Environmental |
Air China and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Elite Color
The main advantage of trading using opposite Air China and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.| Air China vs. Industrial and Commercial | Air China vs. Agricultural Bank of | Air China vs. China Construction Bank | Air China vs. Bank of China |
| Elite Color vs. Air China Ltd | Elite Color vs. Ningxia Younglight Chemicals | Elite Color vs. Lianhe Chemical Technology | Elite Color vs. MayAir Technology 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |