Correlation Between China Eastern and Yunnan Hongxiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Eastern Airlines and Yunnan Hongxiang Yixintang, you can compare the effects of market volatilities on China Eastern and Yunnan Hongxiang 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 Yunnan Hongxiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Yunnan Hongxiang.
Diversification Opportunities for China Eastern and Yunnan Hongxiang
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Yunnan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Yunnan Hongxiang Yixintang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Hongxiang Yix 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 Yunnan Hongxiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Hongxiang Yix has no effect on the direction of China Eastern i.e., China Eastern and Yunnan Hongxiang go up and down completely randomly.
Pair Corralation between China Eastern and Yunnan Hongxiang
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 0.46 times more return on investment than Yunnan Hongxiang. However, China Eastern Airlines is 2.17 times less risky than Yunnan Hongxiang. It trades about 0.3 of its potential returns per unit of risk. Yunnan Hongxiang Yixintang is currently generating about 0.08 per unit of risk. If you would invest 383.00 in China Eastern Airlines on August 31, 2024 and sell it today you would earn a total of 29.00 from holding China Eastern Airlines or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Eastern Airlines vs. Yunnan Hongxiang Yixintang
Performance |
| Timeline |
| China Eastern Airlines |
| Yunnan Hongxiang Yix |
China Eastern and Yunnan Hongxiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Yunnan Hongxiang
The main advantage of trading using opposite China Eastern and Yunnan Hongxiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Yunnan Hongxiang 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 Yunnan Hongxiang will offset losses from the drop in Yunnan Hongxiang's long position.| China Eastern vs. Guangdong Silvere Sci | China Eastern vs. Air China Ltd | China Eastern vs. Tianjin Silvery Dragon | China Eastern vs. Chenzhou Jingui Silver |
| Yunnan Hongxiang vs. China Eastern Airlines | Yunnan Hongxiang vs. Zoje Resources Investment | Yunnan Hongxiang vs. Cultural Investment Holdings | Yunnan Hongxiang vs. Kunwu Jiuding Investment |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets |