Correlation Between Yunnan Hongxiang and China Eastern
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By analyzing existing cross correlation between Yunnan Hongxiang Yixintang and China Eastern Airlines, you can compare the effects of market volatilities on Yunnan Hongxiang 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 Yunnan Hongxiang with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Hongxiang and China Eastern.
Diversification Opportunities for Yunnan Hongxiang and China Eastern
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Hongxiang Yixintang 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 Yunnan Hongxiang 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 Yunnan Hongxiang Yixintang 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 Yunnan Hongxiang i.e., Yunnan Hongxiang and China Eastern go up and down completely randomly.
Pair Corralation between Yunnan Hongxiang and China Eastern
Assuming the 90 days trading horizon Yunnan Hongxiang is expected to generate 1.7 times less return on investment than China Eastern. In addition to that, Yunnan Hongxiang is 2.17 times more volatile than China Eastern Airlines. It trades about 0.08 of its total potential returns per unit of risk. China Eastern Airlines is currently generating about 0.3 per unit of volatility. If you would invest 383.00 in China Eastern Airlines on August 31, 2024 and sell it today you would earn a total of 29.00 from holding China Eastern Airlines or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yunnan Hongxiang Yixintang vs. China Eastern Airlines
Performance |
| Timeline |
| Yunnan Hongxiang Yix |
| China Eastern Airlines |
Yunnan Hongxiang and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Hongxiang and China Eastern
The main advantage of trading using opposite Yunnan Hongxiang and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Hongxiang 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.| Yunnan Hongxiang vs. China Eastern Airlines | Yunnan Hongxiang vs. Zoje Resources Investment | Yunnan Hongxiang vs. Cultural Investment Holdings | Yunnan Hongxiang vs. Kunwu Jiuding Investment |
| China Eastern vs. Guangdong Silvere Sci | China Eastern vs. Air China Ltd | China Eastern vs. Tianjin Silvery Dragon | China Eastern vs. Chenzhou Jingui Silver |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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