Correlation Between Tibet Huayu and Air China
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By analyzing existing cross correlation between Tibet Huayu Mining and Air China Ltd, you can compare the effects of market volatilities on Tibet Huayu 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 Tibet Huayu with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Air China.
Diversification Opportunities for Tibet Huayu and Air China
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Air is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Tibet Huayu 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 Tibet Huayu Mining 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 Tibet Huayu i.e., Tibet Huayu and Air China go up and down completely randomly.
Pair Corralation between Tibet Huayu and Air China
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to under-perform the Air China. In addition to that, Tibet Huayu is 1.06 times more volatile than Air China Ltd. It trades about -0.02 of its total potential returns per unit of risk. Air China Ltd is currently generating about 0.08 per unit of volatility. If you would invest 784.00 in Air China Ltd on September 24, 2024 and sell it today you would earn a total of 29.00 from holding Air China Ltd or generate 3.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tibet Huayu Mining vs. Air China Ltd
Performance |
Timeline |
Tibet Huayu Mining |
Air China |
Tibet Huayu and Air China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tibet Huayu and Air China
The main advantage of trading using opposite Tibet Huayu and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu 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.Tibet Huayu vs. Guangdong Shenglu Telecommunication | Tibet Huayu vs. Guangzhou Zhujiang Brewery | Tibet Huayu vs. Xinjiang Baodi Mining | Tibet Huayu vs. Jiangsu Yanghe Brewery |
Air China vs. Guangdong Jingyi Metal | Air China vs. Ping An Insurance | Air China vs. Tibet Huayu Mining | Air China vs. Gem Year Industrial Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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