Correlation Between CVR Medical and Air China
Can any of the company-specific risk be diversified away by investing in both CVR Medical and Air China 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 CVR Medical and Air China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Medical Corp and Air China Limited, you can compare the effects of market volatilities on CVR Medical 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 CVR Medical with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Medical and Air China.
Diversification Opportunities for CVR Medical and Air China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVR and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVR Medical Corp and Air China Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China Limited and CVR Medical 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 CVR Medical Corp 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 Limited has no effect on the direction of CVR Medical i.e., CVR Medical and Air China go up and down completely randomly.
Pair Corralation between CVR Medical and Air China
If you would invest 1.35 in CVR Medical Corp on October 11, 2024 and sell it today you would earn a total of 0.00 from holding CVR Medical Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Medical Corp vs. Air China Limited
Performance |
| Timeline |
| CVR Medical Corp |
| Air China Limited |
CVR Medical and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Medical and Air China
The main advantage of trading using opposite CVR Medical and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Medical 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.| CVR Medical vs. Neinor Homes SA | CVR Medical vs. PARKEN Sport Entertainment | CVR Medical vs. GEAR4MUSIC LS 10 | CVR Medical vs. alstria office REIT AG |
| Air China vs. INTERSHOP Communications Aktiengesellschaft | Air China vs. Ebro Foods SA | Air China vs. COMPUTERSHARE | Air China vs. Charter Communications |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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