Correlation Between China Petroleum and Eastern Air
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By analyzing existing cross correlation between China Petroleum Chemical and Eastern Air Logistics, you can compare the effects of market volatilities on China Petroleum 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 China Petroleum with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Eastern Air.
Diversification Opportunities for China Petroleum and Eastern Air
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Eastern is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical 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 China Petroleum 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 Petroleum Chemical 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 China Petroleum i.e., China Petroleum and Eastern Air go up and down completely randomly.
Pair Corralation between China Petroleum and Eastern Air
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.73 times more return on investment than Eastern Air. However, China Petroleum Chemical is 1.37 times less risky than Eastern Air. It trades about 0.06 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about 0.01 per unit of risk. If you would invest 432.00 in China Petroleum Chemical on September 4, 2024 and sell it today you would earn a total of 199.00 from holding China Petroleum Chemical or generate 46.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Eastern Air Logistics
Performance |
| Timeline |
| China Petroleum Chemical |
| Eastern Air Logistics |
China Petroleum and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Eastern Air
The main advantage of trading using opposite China Petroleum and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum 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.| China Petroleum vs. Jointo Energy Investment | China Petroleum vs. Jilin Jlu Communication | China Petroleum vs. Shenzhen Centralcon Investment | China Petroleum vs. Beijing Mainstreets Investment |
| Eastern Air vs. Xiandai Investment Co | Eastern Air vs. Zhejiang Construction Investment | Eastern Air vs. Beijing Jiaman Dress | Eastern Air vs. Songz Automobile Air |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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