Correlation Between China Eastern and Zhangjiagang Elegant
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By analyzing existing cross correlation between China Eastern Airlines and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on China Eastern and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Zhangjiagang Elegant.
Diversification Opportunities for China Eastern and Zhangjiagang Elegant
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Zhangjiagang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of China Eastern i.e., China Eastern and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between China Eastern and Zhangjiagang Elegant
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 0.35 times more return on investment than Zhangjiagang Elegant. However, China Eastern Airlines is 2.84 times less risky than Zhangjiagang Elegant. It trades about -0.55 of its potential returns per unit of risk. Zhangjiagang Elegant Home is currently generating about -0.2 per unit of risk. If you would invest 433.00 in China Eastern Airlines on October 12, 2024 and sell it today you would lose (59.00) from holding China Eastern Airlines or give up 13.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| China Eastern Airlines |
| Zhangjiagang Elegant Home |
China Eastern and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Zhangjiagang Elegant
The main advantage of trading using opposite China Eastern and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| China Eastern vs. AVIC Fund Management | China Eastern vs. Jiangsu Broadcasting Cable | China Eastern vs. Cicc Fund Management | China Eastern vs. Shaanxi Broadcast TV |
| Zhangjiagang Elegant vs. China Eastern Airlines | Zhangjiagang Elegant vs. Financial Street Holdings | Zhangjiagang Elegant vs. Agricultural Bank of | Zhangjiagang Elegant vs. Ping An Insurance |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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