Correlation Between Epoxy Base and Air China
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By analyzing existing cross correlation between Epoxy Base Electronic and Air China Ltd, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Air China.
Diversification Opportunities for Epoxy Base and Air China
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Epoxy and Air is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and Air China go up and down completely randomly.
Pair Corralation between Epoxy Base and Air China
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to under-perform the Air China. In addition to that, Epoxy Base is 1.8 times more volatile than Air China Ltd. It trades about -0.07 of its total potential returns per unit of risk. Air China Ltd is currently generating about -0.12 per unit of volatility. If you would invest 810.00 in Air China Ltd on October 17, 2024 and sell it today you would lose (49.00) from holding Air China Ltd or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Air China Ltd
Performance |
| Timeline |
| Epoxy Base Electronic |
| Air China |
Epoxy Base and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Air China
The main advantage of trading using opposite Epoxy Base and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Jointo Energy Investment | Epoxy Base vs. Servyou Software Group | Epoxy Base vs. Jiangsu Yueda Investment | Epoxy Base vs. Suzhou Douson Drilling |
| Air China vs. PKU HealthCare Corp | Air China vs. Suzhou Xingye Material | Air China vs. Kangxin New Materials | Air China vs. Chahua Modern Housewares |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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