Correlation Between Anyang Iron and Eastern Air
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By analyzing existing cross correlation between Anyang Iron Steel and Eastern Air Logistics, you can compare the effects of market volatilities on Anyang Iron 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 Anyang Iron with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anyang Iron and Eastern Air.
Diversification Opportunities for Anyang Iron and Eastern Air
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anyang and Eastern is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Anyang Iron Steel 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 Anyang Iron 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 Anyang Iron Steel 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 Anyang Iron i.e., Anyang Iron and Eastern Air go up and down completely randomly.
Pair Corralation between Anyang Iron and Eastern Air
Assuming the 90 days trading horizon Anyang Iron Steel is expected to generate 1.04 times more return on investment than Eastern Air. However, Anyang Iron is 1.04 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 -0.04 per unit of risk. If you would invest 176.00 in Anyang Iron Steel on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Anyang Iron Steel or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anyang Iron Steel vs. Eastern Air Logistics
Performance |
| Timeline |
| Anyang Iron Steel |
| Eastern Air Logistics |
Anyang Iron and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anyang Iron and Eastern Air
The main advantage of trading using opposite Anyang Iron and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anyang Iron 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.| Anyang Iron vs. ChengDu Hi Tech Development | Anyang Iron vs. Chahua Modern Housewares | Anyang Iron vs. Jiangxi Hengda Hi Tech | Anyang Iron vs. Jonjee Hi tech Industrial |
| Eastern Air vs. Fiberhome Telecommunication Technologies | Eastern Air vs. Ningbo Tech Bank Co | Eastern Air vs. Unisplendour Corp | Eastern Air 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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