Correlation Between Chongqing Brewery and Eastern Air
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By analyzing existing cross correlation between Chongqing Brewery Co and Eastern Air Logistics, you can compare the effects of market volatilities on Chongqing Brewery and Eastern Air 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 Chongqing Brewery with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Eastern Air.
Diversification Opportunities for Chongqing Brewery and Eastern Air
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Eastern is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Eastern Air Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Air Logistics and Chongqing Brewery 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 Chongqing Brewery Co are associated (or correlated) with Eastern Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Air Logistics has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Eastern Air go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Eastern Air
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to generate 1.02 times more return on investment than Eastern Air. However, Chongqing Brewery is 1.02 times more volatile than Eastern Air Logistics. It trades about 0.03 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.2 per unit of risk. If you would invest 6,516 in Chongqing Brewery Co on September 12, 2024 and sell it today you would earn a total of 61.00 from holding Chongqing Brewery Co or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Eastern Air Logistics
Performance |
| Timeline |
| Chongqing Brewery |
| Eastern Air Logistics |
Chongqing Brewery and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Eastern Air
The main advantage of trading using opposite Chongqing Brewery and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Eastern Air 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 Eastern Air will offset losses from the drop in Eastern Air's long position.| Chongqing Brewery vs. China Petroleum Chemical | Chongqing Brewery vs. PetroChina Co Ltd | Chongqing Brewery vs. China State Construction | Chongqing Brewery vs. China Railway Group |
| Eastern Air vs. Chongqing Brewery Co | Eastern Air vs. Gan Yuan Foods | Eastern Air vs. Beijing Yanjing Brewery | Eastern Air vs. Ligao Foods CoLtd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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