Correlation Between Air China and Shuhua Sports
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By analyzing existing cross correlation between Air China Ltd and Shuhua Sports Co, you can compare the effects of market volatilities on Air China and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Shuhua Sports.
Diversification Opportunities for Air China and Shuhua Sports
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Air and Shuhua is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Air China i.e., Air China and Shuhua Sports go up and down completely randomly.
Pair Corralation between Air China and Shuhua Sports
Assuming the 90 days trading horizon Air China is expected to generate 1.19 times less return on investment than Shuhua Sports. But when comparing it to its historical volatility, Air China Ltd is 1.11 times less risky than Shuhua Sports. It trades about 0.16 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Shuhua Sports Co on September 2, 2024 and sell it today you would earn a total of 176.00 from holding Shuhua Sports Co or generate 25.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Shuhua Sports Co
Performance |
| Timeline |
| Air China |
| Shuhua Sports |
Air China and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Shuhua Sports
The main advantage of trading using opposite Air China and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Air China vs. China Life Insurance | Air China vs. Cinda Securities Co | Air China vs. Piotech Inc A | Air China vs. Dongxing Sec Co |
| Shuhua Sports vs. Nanjing Putian Telecommunications | Shuhua Sports vs. Shenzhen Hifuture Electric | Shuhua Sports vs. Tianjin Realty Development | Shuhua Sports vs. Shenyang Huitian Thermal |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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