Correlation Between China Asset and China Express
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By analyzing existing cross correlation between China Asset Management and China Express Airlines, you can compare the effects of market volatilities on China Asset and China Express 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 China Asset with a short position of China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and China Express.
Diversification Opportunities for China Asset and China Express
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and China is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines and China Asset 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 China Asset Management are associated (or correlated) with China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of China Asset i.e., China Asset and China Express go up and down completely randomly.
Pair Corralation between China Asset and China Express
Assuming the 90 days trading horizon China Asset is expected to generate 4.82 times less return on investment than China Express. But when comparing it to its historical volatility, China Asset Management is 2.88 times less risky than China Express. It trades about 0.16 of its potential returns per unit of risk. China Express Airlines is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 518.00 in China Express Airlines on September 16, 2024 and sell it today you would earn a total of 312.00 from holding China Express Airlines or generate 60.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China Asset Management vs. China Express Airlines
Performance |
Timeline |
China Asset Management |
China Express Airlines |
China Asset and China Express Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Asset and China Express
The main advantage of trading using opposite China Asset and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, China Express 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 Express will offset losses from the drop in China Express' long position.China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
China Express vs. Sichuan Yahua Industrial | China Express vs. China Life Insurance | China Express vs. China World Trade | China Express vs. Guangdong Jingyi Metal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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