Correlation Between Shaanxi Meineng and Eastern Air
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Eastern Air Logistics, you can compare the effects of market volatilities on Shaanxi Meineng and Eastern Air 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 Shaanxi Meineng with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Eastern Air.
Diversification Opportunities for Shaanxi Meineng and Eastern Air
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shaanxi and Eastern is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Eastern Air Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Air Logistics and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Eastern Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Air Logistics has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Eastern Air go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Eastern Air
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to under-perform the Eastern Air. In addition to that, Shaanxi Meineng is 1.63 times more volatile than Eastern Air Logistics. It trades about -0.19 of its total potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.09 per unit of volatility. If you would invest 1,662 in Eastern Air Logistics on October 17, 2024 and sell it today you would lose (56.00) from holding Eastern Air Logistics or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Eastern Air Logistics
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Eastern Air Logistics |
Shaanxi Meineng and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Eastern Air
The main advantage of trading using opposite Shaanxi Meineng and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Eastern Air 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 Eastern Air will offset losses from the drop in Eastern Air's long position.| Shaanxi Meineng vs. Henan Shuanghui Investment | Shaanxi Meineng vs. Fujian Wanchen Biotechnology | Shaanxi Meineng vs. Tieling Newcity Investment | Shaanxi Meineng vs. Cultural Investment Holdings |
| Eastern Air vs. Xizi Clean Energy | Eastern Air vs. State Grid InformationCommunication | Eastern Air vs. Shaanxi Meineng Clean | Eastern Air vs. Anhui Transport Consulting |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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