Correlation Between Soyea Technology and China Eastern
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By analyzing existing cross correlation between Soyea Technology Co and China Eastern Airlines, you can compare the effects of market volatilities on Soyea Technology and China Eastern 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 Soyea Technology with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and China Eastern.
Diversification Opportunities for Soyea Technology and China Eastern
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Soyea and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines and Soyea Technology 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 Soyea Technology Co are associated (or correlated) with China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Soyea Technology i.e., Soyea Technology and China Eastern go up and down completely randomly.
Pair Corralation between Soyea Technology and China Eastern
Assuming the 90 days trading horizon Soyea Technology Co is expected to generate 1.98 times more return on investment than China Eastern. However, Soyea Technology is 1.98 times more volatile than China Eastern Airlines. It trades about 0.38 of its potential returns per unit of risk. China Eastern Airlines is currently generating about 0.31 per unit of risk. If you would invest 514.00 in Soyea Technology Co on September 13, 2024 and sell it today you would earn a total of 130.00 from holding Soyea Technology Co or generate 25.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soyea Technology Co vs. China Eastern Airlines
Performance |
| Timeline |
| Soyea Technology |
| China Eastern Airlines |
Soyea Technology and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and China Eastern
The main advantage of trading using opposite Soyea Technology and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology position performs unexpectedly, China Eastern 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 Eastern will offset losses from the drop in China Eastern's long position.| Soyea Technology vs. China Life Insurance | Soyea Technology vs. Cinda Securities Co | Soyea Technology vs. Piotech Inc A | Soyea Technology vs. Dongxing Sec Co |
| China Eastern vs. SUNSEA Telecommunications Co | China Eastern vs. Soyea Technology Co | China Eastern vs. TianJin 712 Communication | China Eastern vs. Guangdong Shenglu Telecommunication |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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