Correlation Between Fujian Longzhou and Eastern Air
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Eastern Air Logistics, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Eastern Air.
Diversification Opportunities for Fujian Longzhou and Eastern Air
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Eastern is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation 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 Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Eastern Air go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Eastern Air
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 2.05 times more return on investment than Eastern Air. However, Fujian Longzhou is 2.05 times more volatile than Eastern Air Logistics. It trades about 0.05 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.2 per unit of risk. If you would invest 443.00 in Fujian Longzhou Transportation on August 27, 2024 and sell it today you would earn a total of 12.00 from holding Fujian Longzhou Transportation or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Eastern Air Logistics
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Eastern Air Logistics |
Fujian Longzhou and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Eastern Air
The main advantage of trading using opposite Fujian Longzhou and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. China Construction Bank |
| Eastern Air vs. China Life Insurance | Eastern Air vs. Piotech Inc A | Eastern Air vs. Dongxing Sec Co | Eastern Air vs. Shanghai OPM Biosciences |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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