Correlation Between Cabio Biotech and Air China
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By analyzing existing cross correlation between Cabio Biotech Wuhan and Air China Ltd, you can compare the effects of market volatilities on Cabio Biotech 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 Cabio Biotech with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Air China.
Diversification Opportunities for Cabio Biotech and Air China
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cabio and Air is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Cabio Biotech 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 Cabio Biotech Wuhan 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 Cabio Biotech i.e., Cabio Biotech and Air China go up and down completely randomly.
Pair Corralation between Cabio Biotech and Air China
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the Air China. In addition to that, Cabio Biotech is 1.87 times more volatile than Air China Ltd. It trades about -0.03 of its total potential returns per unit of risk. Air China Ltd is currently generating about -0.03 per unit of volatility. If you would invest 1,039 in Air China Ltd on October 16, 2024 and sell it today you would lose (311.00) from holding Air China Ltd or give up 29.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Air China Ltd
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Air China |
Cabio Biotech and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Air China
The main advantage of trading using opposite Cabio Biotech and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech 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.| Cabio Biotech vs. Ming Yang Smart | Cabio Biotech vs. 159681 | Cabio Biotech vs. 159005 | Cabio Biotech vs. Loctek Ergonomic Technology |
| Air China vs. Huasi Agricultural Development | Air China vs. Fiberhome Telecommunication Technologies | Air China vs. Weichai Heavy Machinery | Air China vs. Nanxing Furniture Machinery |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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