Correlation Between China Eastern and Guangdong Silvere
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By analyzing existing cross correlation between China Eastern Airlines and Guangdong Silvere Sci, you can compare the effects of market volatilities on China Eastern and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Guangdong Silvere.
Diversification Opportunities for China Eastern and Guangdong Silvere
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Guangdong is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of China Eastern i.e., China Eastern and Guangdong Silvere go up and down completely randomly.
Pair Corralation between China Eastern and Guangdong Silvere
Assuming the 90 days trading horizon China Eastern is expected to generate 148.79 times less return on investment than Guangdong Silvere. But when comparing it to its historical volatility, China Eastern Airlines is 2.18 times less risky than Guangdong Silvere. It trades about 0.01 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 663.00 in Guangdong Silvere Sci on November 29, 2024 and sell it today you would earn a total of 150.00 from holding Guangdong Silvere Sci or generate 22.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Guangdong Silvere Sci
Performance |
| Timeline |
| China Eastern Airlines |
| Guangdong Silvere Sci |
China Eastern and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Guangdong Silvere
The main advantage of trading using opposite China Eastern and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| China Eastern vs. Biwin Storage Technology | China Eastern vs. Zijin Mining Group | China Eastern vs. Longmaster Information Tech | China Eastern vs. Ningbo Fujia Industrial |
| Guangdong Silvere vs. TianJin 712 Communication | Guangdong Silvere vs. China Mobile Limited | Guangdong Silvere vs. Huizhou Speed Wireless | Guangdong Silvere vs. Guangxi Wuzhou Communications |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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