Correlation Between China Eastern and Jiaozuo Wanfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Eastern Airlines and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on China Eastern and Jiaozuo Wanfang 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 Eastern with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Jiaozuo Wanfang.
Diversification Opportunities for China Eastern and Jiaozuo Wanfang
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Jiaozuo is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and China Eastern 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 Eastern Airlines are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of China Eastern i.e., China Eastern and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between China Eastern and Jiaozuo Wanfang
Assuming the 90 days trading horizon China Eastern Airlines is expected to under-perform the Jiaozuo Wanfang. But the stock apears to be less risky and, when comparing its historical volatility, China Eastern Airlines is 1.0 times less risky than Jiaozuo Wanfang. The stock trades about -0.1 of its potential returns per unit of risk. The Jiaozuo Wanfang Aluminum is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 652.00 in Jiaozuo Wanfang Aluminum on October 28, 2024 and sell it today you would earn a total of 79.00 from holding Jiaozuo Wanfang Aluminum or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| China Eastern Airlines |
| Jiaozuo Wanfang Aluminum |
China Eastern and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Jiaozuo Wanfang
The main advantage of trading using opposite China Eastern and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| China Eastern vs. Anhui Huaren Health | China Eastern vs. Humanwell Healthcare Group | China Eastern vs. Xizi Clean Energy | China Eastern vs. Andon Health Co |
| Jiaozuo Wanfang vs. Changchun UP Optotech | Jiaozuo Wanfang vs. Wuhan Hvsen Biotechnology | Jiaozuo Wanfang vs. HUAQIN TECHNOLOGY LTD | Jiaozuo Wanfang vs. Montage Technology Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |