Correlation Between Jinhui Mining and Air China
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By analyzing existing cross correlation between Jinhui Mining Co and Air China Ltd, you can compare the effects of market volatilities on Jinhui Mining 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 Jinhui Mining with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Air China.
Diversification Opportunities for Jinhui Mining and Air China
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinhui and Air is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Jinhui Mining 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 Jinhui Mining Co 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 Jinhui Mining i.e., Jinhui Mining and Air China go up and down completely randomly.
Pair Corralation between Jinhui Mining and Air China
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.57 times more return on investment than Air China. However, Jinhui Mining Co is 1.76 times less risky than Air China. It trades about 0.13 of its potential returns per unit of risk. Air China Ltd is currently generating about -0.07 per unit of risk. If you would invest 1,109 in Jinhui Mining Co on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Jinhui Mining Co or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Air China Ltd
Performance |
| Timeline |
| Jinhui Mining |
| Air China |
Jinhui Mining and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Air China
The main advantage of trading using opposite Jinhui Mining and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining 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.| Jinhui Mining vs. Shenzhen Centralcon Investment | Jinhui Mining vs. Shaanxi Energy Investment | Jinhui Mining vs. Nuode Investment Co | Jinhui Mining vs. Tieling Newcity Investment |
| Air China vs. Zhongrun Resources Investment | Air China vs. Anji Foodstuff Co | Air China vs. Hunan Investment Group | Air China vs. V V Food |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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