Correlation Between XiaMen HongXin and China Eastern
Specify exactly 2 symbols:
By analyzing existing cross correlation between XiaMen HongXin Electron tech and China Eastern Airlines, you can compare the effects of market volatilities on XiaMen HongXin 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 XiaMen HongXin with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and China Eastern.
Diversification Opportunities for XiaMen HongXin and China Eastern
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XiaMen and China is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech 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 XiaMen HongXin 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 XiaMen HongXin Electron tech 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 XiaMen HongXin i.e., XiaMen HongXin and China Eastern go up and down completely randomly.
Pair Corralation between XiaMen HongXin and China Eastern
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 2.45 times more return on investment than China Eastern. However, XiaMen HongXin is 2.45 times more volatile than China Eastern Airlines. It trades about 0.06 of its potential returns per unit of risk. China Eastern Airlines is currently generating about 0.03 per unit of risk. If you would invest 2,072 in XiaMen HongXin Electron tech on November 4, 2024 and sell it today you would earn a total of 75.00 from holding XiaMen HongXin Electron tech or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. China Eastern Airlines
Performance |
| Timeline |
| XiaMen HongXin Electron |
| China Eastern Airlines |
XiaMen HongXin and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and China Eastern
The main advantage of trading using opposite XiaMen HongXin and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin 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.| XiaMen HongXin vs. Allwin Telecommunication Co | XiaMen HongXin vs. Bank of Communications | XiaMen HongXin vs. State Grid InformationCommunication | XiaMen HongXin vs. Bomesc Offshore Engineering |
| China Eastern vs. Easyhome New Retail | China Eastern vs. Vohringer Home Technology | China Eastern vs. Nanjing OLO Home | China Eastern vs. Sichuan Fulin Transportation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |