Correlation Between Contec Medical and Eastern Air
Specify exactly 2 symbols:
By analyzing existing cross correlation between Contec Medical Systems and Eastern Air Logistics, you can compare the effects of market volatilities on Contec Medical 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 Contec Medical with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contec Medical and Eastern Air.
Diversification Opportunities for Contec Medical and Eastern Air
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Contec and Eastern is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Contec Medical Systems 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 Contec Medical 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 Contec Medical Systems 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 Contec Medical i.e., Contec Medical and Eastern Air go up and down completely randomly.
Pair Corralation between Contec Medical and Eastern Air
Assuming the 90 days trading horizon Contec Medical Systems is expected to generate 1.21 times more return on investment than Eastern Air. However, Contec Medical is 1.21 times more volatile than Eastern Air Logistics. It trades about 0.02 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.06 per unit of risk. If you would invest 1,525 in Contec Medical Systems on August 29, 2024 and sell it today you would earn a total of 23.00 from holding Contec Medical Systems or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contec Medical Systems vs. Eastern Air Logistics
Performance |
| Timeline |
| Contec Medical Systems |
| Eastern Air Logistics |
Contec Medical and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contec Medical and Eastern Air
The main advantage of trading using opposite Contec Medical and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contec Medical 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.| Contec Medical vs. Industrial and Commercial | Contec Medical vs. China Construction Bank | Contec Medical vs. Agricultural Bank of | Contec Medical vs. Bank of China |
| Eastern Air vs. PetroChina Co Ltd | Eastern Air vs. China State Construction | Eastern Air vs. China Mobile Limited | Eastern Air vs. Industrial and Commercial |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |