Correlation Between Beijing SPC and Eastern Air
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By analyzing existing cross correlation between Beijing SPC Environment and Eastern Air Logistics, you can compare the effects of market volatilities on Beijing SPC 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 Beijing SPC with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Eastern Air.
Diversification Opportunities for Beijing SPC and Eastern Air
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Beijing and Eastern is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment 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 Beijing SPC 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 Beijing SPC Environment 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 Beijing SPC i.e., Beijing SPC and Eastern Air go up and down completely randomly.
Pair Corralation between Beijing SPC and Eastern Air
Assuming the 90 days trading horizon Beijing SPC Environment is expected to generate 0.63 times more return on investment than Eastern Air. However, Beijing SPC Environment is 1.58 times less risky than Eastern Air. It trades about -0.07 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.17 per unit of risk. If you would invest 404.00 in Beijing SPC Environment on November 30, 2024 and sell it today you would lose (21.00) from holding Beijing SPC Environment or give up 5.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Eastern Air Logistics
Performance |
| Timeline |
| Beijing SPC Environment |
| Eastern Air Logistics |
Beijing SPC and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Eastern Air
The main advantage of trading using opposite Beijing SPC and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC 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.| Beijing SPC vs. Zhongshan Broad Ocean Motor | Beijing SPC vs. Huawen Media Investment | Beijing SPC vs. Jiangsu Broadcasting Cable | Beijing SPC vs. Shaanxi Broadcast TV |
| Eastern Air vs. Suzhou Weizhixiang Food | Eastern Air vs. Xinjiang Tianrun Dairy | Eastern Air vs. Guilin Seamild Foods | Eastern Air vs. Zhengzhou Coal Mining |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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