Correlation Between Air China and Yingde Greatchem
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By analyzing existing cross correlation between Air China Ltd and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Air China and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Yingde Greatchem.
Diversification Opportunities for Air China and Yingde Greatchem
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Air and Yingde is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Air China i.e., Air China and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Air China and Yingde Greatchem
Assuming the 90 days trading horizon Air China Ltd is expected to generate 0.55 times more return on investment than Yingde Greatchem. However, Air China Ltd is 1.81 times less risky than Yingde Greatchem. It trades about -0.03 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.02 per unit of risk. If you would invest 1,174 in Air China Ltd on September 3, 2024 and sell it today you would lose (346.00) from holding Air China Ltd or give up 29.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 73.17% |
| Values | Daily Returns |
Air China Ltd vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Air China |
| Yingde Greatchem Che |
Air China and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Yingde Greatchem
The main advantage of trading using opposite Air China and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Air China vs. Cultural Investment Holdings | Air China vs. Gome Telecom Equipment | Air China vs. Bus Online Co | Air China vs. Holitech Technology Co |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Hoshine Silicon Ind |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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