Correlation Between Air China and 360 Security
Specify exactly 2 symbols:
By analyzing existing cross correlation between Air China Ltd and 360 Security Technology, you can compare the effects of market volatilities on Air China and 360 Security 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 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and 360 Security.
Diversification Opportunities for Air China and 360 Security
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and 360 is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology 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 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of Air China i.e., Air China and 360 Security go up and down completely randomly.
Pair Corralation between Air China and 360 Security
Assuming the 90 days trading horizon Air China Ltd is expected to generate 0.81 times more return on investment than 360 Security. However, Air China Ltd is 1.24 times less risky than 360 Security. It trades about -0.08 of its potential returns per unit of risk. 360 Security Technology is currently generating about -0.16 per unit of risk. If you would invest 813.00 in Air China Ltd on October 24, 2024 and sell it today you would lose (33.00) from holding Air China Ltd or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. 360 Security Technology
Performance |
| Timeline |
| Air China |
| 360 Security Technology |
Air China and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and 360 Security
The main advantage of trading using opposite Air China and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security's long position.| Air China vs. JCHX Mining Management | Air China vs. Runjian Communication Co | Air China vs. Shanghai Shibei Hi Tech | Air China vs. Jinhui Mining Co |
| 360 Security vs. China Eastern Airlines | 360 Security vs. Jiangxi Hengda Hi Tech | 360 Security vs. Unisplendour Corp | 360 Security vs. Shenzhen MYS Environmental |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |