Correlation Between Nantong Jiangshan and Eastern Air
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By analyzing existing cross correlation between Nantong Jiangshan Agrochemical and Eastern Air Logistics, you can compare the effects of market volatilities on Nantong Jiangshan 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 Nantong Jiangshan with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Jiangshan and Eastern Air.
Diversification Opportunities for Nantong Jiangshan and Eastern Air
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nantong and Eastern is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Jiangshan Agrochemical 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 Nantong Jiangshan 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 Nantong Jiangshan Agrochemical 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 Nantong Jiangshan i.e., Nantong Jiangshan and Eastern Air go up and down completely randomly.
Pair Corralation between Nantong Jiangshan and Eastern Air
Assuming the 90 days trading horizon Nantong Jiangshan Agrochemical is expected to generate 1.25 times more return on investment than Eastern Air. However, Nantong Jiangshan is 1.25 times more volatile than Eastern Air Logistics. It trades about 0.06 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.27 per unit of risk. If you would invest 1,463 in Nantong Jiangshan Agrochemical on August 28, 2024 and sell it today you would earn a total of 37.00 from holding Nantong Jiangshan Agrochemical or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Jiangshan Agrochemical vs. Eastern Air Logistics
Performance |
| Timeline |
| Nantong Jiangshan |
| Eastern Air Logistics |
Nantong Jiangshan and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Jiangshan and Eastern Air
The main advantage of trading using opposite Nantong Jiangshan and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Jiangshan 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.| Nantong Jiangshan vs. Zijin Mining Group | Nantong Jiangshan vs. Wanhua Chemical Group | Nantong Jiangshan vs. Baoshan Iron Steel | Nantong Jiangshan vs. Shandong Gold Mining |
| Eastern Air vs. Ningbo Bohui Chemical | Eastern Air vs. Hangzhou Pinming Software | Eastern Air vs. Nantong Jiangshan Agrochemical | Eastern Air vs. Ningxia Younglight Chemicals |
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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