Correlation Between China Express and Integrated Electronic
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By analyzing existing cross correlation between China Express Airlines and Integrated Electronic Systems, you can compare the effects of market volatilities on China Express and Integrated Electronic 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 China Express with a short position of Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and Integrated Electronic.
Diversification Opportunities for China Express and Integrated Electronic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Integrated is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic and China Express 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 China Express Airlines are associated (or correlated) with Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of China Express i.e., China Express and Integrated Electronic go up and down completely randomly.
Pair Corralation between China Express and Integrated Electronic
Assuming the 90 days trading horizon China Express Airlines is expected to under-perform the Integrated Electronic. But the stock apears to be less risky and, when comparing its historical volatility, China Express Airlines is 1.26 times less risky than Integrated Electronic. The stock trades about -0.03 of its potential returns per unit of risk. The Integrated Electronic Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 707.00 in Integrated Electronic Systems on August 28, 2024 and sell it today you would earn a total of 70.00 from holding Integrated Electronic Systems or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. Integrated Electronic Systems
Performance |
| Timeline |
| China Express Airlines |
| Integrated Electronic |
China Express and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and Integrated Electronic
The main advantage of trading using opposite China Express and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| China Express vs. Anhui Transport Consulting | China Express vs. China Sports Industry | China Express vs. Innovative Medical Management | China Express vs. Shandong Sanyuan Biotechnology |
| Integrated Electronic vs. Lander Sports Development | Integrated Electronic vs. Gem Year Industrial Co | Integrated Electronic vs. Offshore Oil Engineering | Integrated Electronic vs. Guangzhou Dongfang Hotel |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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