Correlation Between China Eastern and Suzhou Mingzhi
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By analyzing existing cross correlation between China Eastern Airlines and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on China Eastern and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Suzhou Mingzhi.
Diversification Opportunities for China Eastern and Suzhou Mingzhi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Suzhou is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of China Eastern i.e., China Eastern and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between China Eastern and Suzhou Mingzhi
Assuming the 90 days trading horizon China Eastern is expected to generate 10.63 times less return on investment than Suzhou Mingzhi. In addition to that, China Eastern is 1.05 times more volatile than Suzhou Mingzhi Technology. It trades about 0.03 of its total potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.33 per unit of volatility. If you would invest 1,592 in Suzhou Mingzhi Technology on November 4, 2024 and sell it today you would earn a total of 207.00 from holding Suzhou Mingzhi Technology or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| China Eastern Airlines |
| Suzhou Mingzhi Technology |
China Eastern and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Suzhou Mingzhi
The main advantage of trading using opposite China Eastern and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| China Eastern vs. Easyhome New Retail | China Eastern vs. Vohringer Home Technology | China Eastern vs. Nanjing OLO Home | China Eastern vs. Sichuan Fulin Transportation |
| Suzhou Mingzhi vs. Montage Technology Co | Suzhou Mingzhi vs. Changzhou Evergreen Technology | Suzhou Mingzhi vs. Yunnan Jianzhijia Health Chain | Suzhou Mingzhi vs. Humanwell Healthcare Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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