Correlation Between Air China and Soochow Suzhou
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By analyzing existing cross correlation between Air China Ltd and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Air China and Soochow Suzhou 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 Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Soochow Suzhou.
Diversification Opportunities for Air China and Soochow Suzhou
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Soochow is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Soochow Suzhou Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Suzhou Industrial 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 Soochow Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Suzhou Industrial has no effect on the direction of Air China i.e., Air China and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Air China and Soochow Suzhou
Assuming the 90 days trading horizon Air China Ltd is expected to under-perform the Soochow Suzhou. In addition to that, Air China is 2.58 times more volatile than Soochow Suzhou Industrial. It trades about -0.39 of its total potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about 0.27 per unit of volatility. If you would invest 333.00 in Soochow Suzhou Industrial on October 14, 2024 and sell it today you would earn a total of 13.00 from holding Soochow Suzhou Industrial or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Air China |
| Soochow Suzhou Industrial |
Air China and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Soochow Suzhou
The main advantage of trading using opposite Air China and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Soochow Suzhou 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 Soochow Suzhou will offset losses from the drop in Soochow Suzhou's long position.| 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 |
| Soochow Suzhou vs. Servyou Software Group | Soochow Suzhou vs. Holitech Technology Co | Soochow Suzhou vs. Hangzhou Pinming Software | Soochow Suzhou vs. Bingo Software 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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