Correlation Between Air China and Jiangsu Broadcasting
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By analyzing existing cross correlation between Air China Ltd and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Air China and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Jiangsu Broadcasting.
Diversification Opportunities for Air China and Jiangsu Broadcasting
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Air and Jiangsu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Air China i.e., Air China and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Air China and Jiangsu Broadcasting
Assuming the 90 days trading horizon Air China is expected to generate 1.03 times less return on investment than Jiangsu Broadcasting. But when comparing it to its historical volatility, Air China Ltd is 1.11 times less risky than Jiangsu Broadcasting. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 302.00 in Jiangsu Broadcasting Cable on October 14, 2024 and sell it today you would earn a total of 9.00 from holding Jiangsu Broadcasting Cable or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Air China |
| Jiangsu Broadcasting |
Air China and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Jiangsu Broadcasting
The main advantage of trading using opposite Air China and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Air China vs. State Grid InformationCommunication | Air China vs. Strait Innovation Internet | Air China vs. Sichuan Jinshi Technology | Air China vs. Beijing Enlight Media |
| Jiangsu Broadcasting vs. Shandong Polymer Biochemicals | Jiangsu Broadcasting vs. Air China Ltd | Jiangsu Broadcasting vs. Shenzhen Glory Medical | Jiangsu Broadcasting vs. Hubei Xingfa Chemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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