Correlation Between RoadMain T and Air China
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By analyzing existing cross correlation between RoadMain T Co and Air China Ltd, you can compare the effects of market volatilities on RoadMain T 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 RoadMain T with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and Air China.
Diversification Opportunities for RoadMain T and Air China
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between RoadMain and Air is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T 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 RoadMain T 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 RoadMain T 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 RoadMain T i.e., RoadMain T and Air China go up and down completely randomly.
Pair Corralation between RoadMain T and Air China
Assuming the 90 days trading horizon RoadMain T Co is expected to generate 1.97 times more return on investment than Air China. However, RoadMain T is 1.97 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 2,383 in RoadMain T Co on September 28, 2024 and sell it today you would earn a total of 587.00 from holding RoadMain T Co or generate 24.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
RoadMain T Co vs. Air China Ltd
Performance |
| Timeline |
| RoadMain T |
| Air China |
RoadMain T and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and Air China
The main advantage of trading using opposite RoadMain T and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T 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.| RoadMain T vs. Ming Yang Smart | RoadMain T vs. 159681 | RoadMain T vs. 159005 | RoadMain T vs. Loctek Ergonomic Technology |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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