Correlation Between Ningbo Boway and Air China
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By analyzing existing cross correlation between Ningbo Boway Alloy and Air China Ltd, you can compare the effects of market volatilities on Ningbo Boway and Air China 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 Ningbo Boway with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Boway and Air China.
Diversification Opportunities for Ningbo Boway and Air China
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Air is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Boway Alloy and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Ningbo Boway 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 Ningbo Boway Alloy are associated (or correlated) with Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of Ningbo Boway i.e., Ningbo Boway and Air China go up and down completely randomly.
Pair Corralation between Ningbo Boway and Air China
Assuming the 90 days trading horizon Ningbo Boway Alloy is expected to generate 3.06 times more return on investment than Air China. However, Ningbo Boway is 3.06 times more volatile than Air China Ltd. It trades about 0.03 of its potential returns per unit of risk. Air China Ltd is currently generating about -0.02 per unit of risk. If you would invest 1,661 in Ningbo Boway Alloy on September 28, 2024 and sell it today you would earn a total of 340.00 from holding Ningbo Boway Alloy or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.95% |
| Values | Daily Returns |
Ningbo Boway Alloy vs. Air China Ltd
Performance |
| Timeline |
| Ningbo Boway Alloy |
| Air China |
Ningbo Boway and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Boway and Air China
The main advantage of trading using opposite Ningbo Boway and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Boway position performs unexpectedly, Air China 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 Air China will offset losses from the drop in Air China's long position.| Ningbo Boway vs. Shanghai Broadband Technology | Ningbo Boway vs. Anhui Huaheng Biotechnology | Ningbo Boway vs. Sichuan Hebang Biotechnology | Ningbo Boway vs. RoadMain T Co |
| Air China vs. Industrial and Commercial | Air China vs. Agricultural Bank of | Air China vs. China Construction Bank | Air China vs. Bank of China |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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