Correlation Between China Eastern and JiShi Media
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By analyzing existing cross correlation between China Eastern Airlines and JiShi Media Co, you can compare the effects of market volatilities on China Eastern and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and JiShi Media.
Diversification Opportunities for China Eastern and JiShi Media
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and JiShi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of China Eastern i.e., China Eastern and JiShi Media go up and down completely randomly.
Pair Corralation between China Eastern and JiShi Media
Assuming the 90 days trading horizon China Eastern Airlines is expected to under-perform the JiShi Media. But the stock apears to be less risky and, when comparing its historical volatility, China Eastern Airlines is 2.43 times less risky than JiShi Media. The stock trades about -0.01 of its potential returns per unit of risk. The JiShi Media Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 101.00 in JiShi Media Co on October 18, 2024 and sell it today you would earn a total of 78.00 from holding JiShi Media Co or generate 77.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.17% |
| Values | Daily Returns |
China Eastern Airlines vs. JiShi Media Co
Performance |
| Timeline |
| China Eastern Airlines |
| JiShi Media |
China Eastern and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and JiShi Media
The main advantage of trading using opposite China Eastern and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| China Eastern vs. 360 Security Technology | China Eastern vs. Hangzhou Arcvideo Technology | China Eastern vs. Hoshine Silicon Ind | China Eastern vs. Guangdong Xiongsu Technology |
| JiShi Media vs. Dongfeng Automobile Co | JiShi Media vs. China Eastern Airlines | JiShi Media vs. Malion New Materials | JiShi Media vs. Juneyao 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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