Correlation Between Beijing Jiaman and Eastern Air
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By analyzing existing cross correlation between Beijing Jiaman Dress and Eastern Air Logistics, you can compare the effects of market volatilities on Beijing Jiaman 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 Beijing Jiaman with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Eastern Air.
Diversification Opportunities for Beijing Jiaman and Eastern Air
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Eastern is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress 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 Beijing Jiaman 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 Beijing Jiaman Dress 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 Beijing Jiaman i.e., Beijing Jiaman and Eastern Air go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Eastern Air
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to generate 1.13 times more return on investment than Eastern Air. However, Beijing Jiaman is 1.13 times more volatile than Eastern Air Logistics. It trades about 0.06 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.2 per unit of risk. If you would invest 2,119 in Beijing Jiaman Dress on September 12, 2024 and sell it today you would earn a total of 43.00 from holding Beijing Jiaman Dress or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Eastern Air Logistics
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Eastern Air Logistics |
Beijing Jiaman and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Eastern Air
The main advantage of trading using opposite Beijing Jiaman and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman 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.| Beijing Jiaman vs. Lutian Machinery Co | Beijing Jiaman vs. PetroChina Co Ltd | Beijing Jiaman vs. Bank of China | Beijing Jiaman vs. Gansu Jiu Steel |
| Eastern Air vs. Chongqing Brewery Co | Eastern Air vs. Gan Yuan Foods | Eastern Air vs. Beijing Yanjing Brewery | Eastern Air vs. Ligao Foods CoLtd |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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