Correlation Between Guangdong Silvere and China Eastern
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Silvere Sci and China Eastern Airlines, you can compare the effects of market volatilities on Guangdong Silvere 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 Silvere with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and China Eastern.
Diversification Opportunities for Guangdong Silvere and China Eastern
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and China is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci 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 Silvere 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 Silvere Sci 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 Silvere i.e., Guangdong Silvere and China Eastern go up and down completely randomly.
Pair Corralation between Guangdong Silvere and China Eastern
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 2.43 times more return on investment than China Eastern. However, Guangdong Silvere is 2.43 times more volatile than China Eastern Airlines. It trades about 0.14 of its potential returns per unit of risk. China Eastern Airlines is currently generating about 0.25 per unit of risk. If you would invest 608.00 in Guangdong Silvere Sci on September 2, 2024 and sell it today you would earn a total of 49.00 from holding Guangdong Silvere Sci or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. China Eastern Airlines
Performance |
| Timeline |
| Guangdong Silvere Sci |
| China Eastern Airlines |
Guangdong Silvere and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and China Eastern
The main advantage of trading using opposite Guangdong Silvere and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere 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 Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Shandong Gold Mining |
| China Eastern vs. Weihai Honglin Electronic | China Eastern vs. Penyao Environmental Protection | China Eastern vs. Sinosteel Engineering and | China Eastern vs. Beijing SPC Environment |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |