Correlation Between Analog Devices and China Southern
Can any of the company-specific risk be diversified away by investing in both Analog Devices and China Southern at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Analog Devices and China Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analog Devices and China Southern Airlines, you can compare the effects of market volatilities on Analog Devices and China Southern 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 Analog Devices with a short position of China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and China Southern.
Diversification Opportunities for Analog Devices and China Southern
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Analog and China is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and China Southern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern Airlines and Analog Devices 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 Analog Devices are associated (or correlated) with China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern Airlines has no effect on the direction of Analog Devices i.e., Analog Devices and China Southern go up and down completely randomly.
Pair Corralation between Analog Devices and China Southern
If you would invest 19,325 in Analog Devices on September 12, 2024 and sell it today you would earn a total of 2,387 from holding Analog Devices or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Analog Devices vs. China Southern Airlines
Performance |
| Timeline |
| Analog Devices |
| China Southern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Analog Devices and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Devices and China Southern
The main advantage of trading using opposite Analog Devices and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices position performs unexpectedly, China Southern 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 China Southern will offset losses from the drop in China Southern's long position.| Analog Devices vs. NXP Semiconductors NV | Analog Devices vs. Qualcomm Incorporated | Analog Devices vs. Broadcom | Analog Devices vs. Microchip Technology |
| China Southern vs. Zhihu Inc ADR | China Southern vs. Integral Ad Science | China Southern vs. Pinterest | China Southern vs. Analog Devices |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |