Correlation Between China Eastern and Shanghai Sanyou
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By analyzing existing cross correlation between China Eastern Airlines and Shanghai Sanyou Medical, you can compare the effects of market volatilities on China Eastern and Shanghai Sanyou 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 Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Shanghai Sanyou.
Diversification Opportunities for China Eastern and Shanghai Sanyou
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shanghai is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical 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 Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of China Eastern i.e., China Eastern and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between China Eastern and Shanghai Sanyou
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 0.53 times more return on investment than Shanghai Sanyou. However, China Eastern Airlines is 1.89 times less risky than Shanghai Sanyou. It trades about -0.04 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about -0.02 per unit of risk. If you would invest 530.00 in China Eastern Airlines on October 26, 2024 and sell it today you would lose (142.00) from holding China Eastern Airlines or give up 26.79% 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. Shanghai Sanyou Medical
Performance |
| Timeline |
| China Eastern Airlines |
| Shanghai Sanyou Medical |
China Eastern and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Shanghai Sanyou
The main advantage of trading using opposite China Eastern and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Shanghai Sanyou 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 Shanghai Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| China Eastern vs. Hubei Geoway Investment | China Eastern vs. Liaoning Chengda Biotechnology | China Eastern vs. Changchun BCHT Biotechnology | China Eastern vs. Jiangsu GDK Biotechnology |
| Shanghai Sanyou vs. Agricultural Bank of | Shanghai Sanyou vs. Industrial and Commercial | Shanghai Sanyou vs. Bank of China | Shanghai Sanyou vs. China Construction Bank |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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