Correlation Between Guangdong Shenglu and China Eastern
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and China Eastern Airlines, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and China Eastern.
Diversification Opportunities for Guangdong Shenglu and China Eastern
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and China Eastern go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and China Eastern
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the China Eastern. In addition to that, Guangdong Shenglu is 1.64 times more volatile than China Eastern Airlines. It trades about 0.0 of its total potential returns per unit of risk. China Eastern Airlines is currently generating about 0.31 per unit of volatility. If you would invest 394.00 in China Eastern Airlines on September 13, 2024 and sell it today you would earn a total of 39.00 from holding China Eastern Airlines or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. China Eastern Airlines
Performance |
| Timeline |
| Guangdong Shenglu |
| China Eastern Airlines |
Guangdong Shenglu and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and China Eastern
The main advantage of trading using opposite Guangdong Shenglu and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China | Guangdong Shenglu vs. Agricultural Bank of |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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