Correlation Between Air China and Beijing Roborock
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By analyzing existing cross correlation between Air China Ltd and Beijing Roborock Technology, you can compare the effects of market volatilities on Air China and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Beijing Roborock.
Diversification Opportunities for Air China and Beijing Roborock
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Beijing is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Air China i.e., Air China and Beijing Roborock go up and down completely randomly.
Pair Corralation between Air China and Beijing Roborock
Assuming the 90 days trading horizon Air China Ltd is expected to generate 0.61 times more return on investment than Beijing Roborock. However, Air China Ltd is 1.65 times less risky than Beijing Roborock. It trades about 0.06 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about -0.07 per unit of risk. If you would invest 701.00 in Air China Ltd on October 14, 2024 and sell it today you would earn a total of 42.00 from holding Air China Ltd or generate 5.99% 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. Beijing Roborock Technology
Performance |
| Timeline |
| Air China |
| Beijing Roborock Tec |
Air China and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Beijing Roborock
The main advantage of trading using opposite Air China and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock'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 |
| Beijing Roborock vs. Air China Ltd | Beijing Roborock vs. MayAir Technology Co | Beijing Roborock vs. Silkroad Visual Technology | Beijing Roborock vs. Shaanxi Meineng Clean |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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