Correlation Between China Eastern and Sinofibers Technology
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By analyzing existing cross correlation between China Eastern Airlines and Sinofibers Technology Co, you can compare the effects of market volatilities on China Eastern and Sinofibers Technology 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 Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Sinofibers Technology.
Diversification Opportunities for China Eastern and Sinofibers Technology
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Sinofibers is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology 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 Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of China Eastern i.e., China Eastern and Sinofibers Technology go up and down completely randomly.
Pair Corralation between China Eastern and Sinofibers Technology
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 0.67 times more return on investment than Sinofibers Technology. However, China Eastern Airlines is 1.48 times less risky than Sinofibers Technology. It trades about 0.04 of its potential returns per unit of risk. Sinofibers Technology Co is currently generating about -0.06 per unit of risk. If you would invest 373.00 in China Eastern Airlines on October 25, 2024 and sell it today you would earn a total of 12.00 from holding China Eastern Airlines or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
China Eastern Airlines vs. Sinofibers Technology Co
Performance |
| Timeline |
| China Eastern Airlines |
| Sinofibers Technology |
China Eastern and Sinofibers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Sinofibers Technology
The main advantage of trading using opposite China Eastern and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.| China Eastern vs. Kweichow Moutai Co | China Eastern vs. Contemporary Amperex Technology | China Eastern vs. Beijing Roborock Technology | China Eastern vs. BYD Co Ltd |
| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Wanhua Chemical Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Rongsheng Petrochemical 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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