Correlation Between China Eastern and Beijing Kaiwen
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By analyzing existing cross correlation between China Eastern Airlines and Beijing Kaiwen Education, you can compare the effects of market volatilities on China Eastern and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Beijing Kaiwen.
Diversification Opportunities for China Eastern and Beijing Kaiwen
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Beijing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of China Eastern i.e., China Eastern and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between China Eastern and Beijing Kaiwen
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 0.26 times more return on investment than Beijing Kaiwen. However, China Eastern Airlines is 3.88 times less risky than Beijing Kaiwen. It trades about 0.25 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.06 per unit of risk. If you would invest 384.00 in China Eastern Airlines on September 1, 2024 and sell it today you would earn a total of 24.00 from holding China Eastern Airlines or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Beijing Kaiwen Education
Performance |
| Timeline |
| China Eastern Airlines |
| Beijing Kaiwen Education |
China Eastern and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Beijing Kaiwen
The main advantage of trading using opposite China Eastern and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| China Eastern vs. China Life Insurance | China Eastern vs. Cinda Securities Co | China Eastern vs. Piotech Inc A | China Eastern vs. Dongxing Sec Co |
| Beijing Kaiwen vs. Western Metal Materials | Beijing Kaiwen vs. China Minmetals Rare | Beijing Kaiwen vs. Air China Ltd | Beijing Kaiwen vs. China Eastern Airlines |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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