Correlation Between Air China and Ming Yang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Air China Ltd and Ming Yang Smart, you can compare the effects of market volatilities on Air China and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Ming Yang.
Diversification Opportunities for Air China and Ming Yang
Poor diversification
The 3 months correlation between Air and Ming is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Air China i.e., Air China and Ming Yang go up and down completely randomly.
Pair Corralation between Air China and Ming Yang
Assuming the 90 days trading horizon Air China is expected to generate 1.83 times less return on investment than Ming Yang. But when comparing it to its historical volatility, Air China Ltd is 1.4 times less risky than Ming Yang. It trades about 0.06 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Ming Yang Smart on November 2, 2024 and sell it today you would earn a total of 170.00 from holding Ming Yang Smart or generate 19.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Ming Yang Smart
Performance |
| Timeline |
| Air China |
| Ming Yang Smart |
Air China and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Ming Yang
The main advantage of trading using opposite Air China and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Air China vs. Postal Savings Bank | Air China vs. China Everbright Bank | Air China vs. Dymatic Chemicals | Air China vs. Do Fluoride Chemicals Co |
| Ming Yang vs. Huaibei Mining Holdings | Ming Yang vs. Holitech Technology Co | Ming Yang vs. Tibet Huayu Mining | Ming Yang vs. Jinhui Mining 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |