Correlation Between Metro Investment and Eastern Air
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By analyzing existing cross correlation between Metro Investment Development and Eastern Air Logistics, you can compare the effects of market volatilities on Metro Investment 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 Metro Investment with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Eastern Air.
Diversification Opportunities for Metro Investment and Eastern Air
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Metro and Eastern is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development 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 Metro Investment 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 Metro Investment Development 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 Metro Investment i.e., Metro Investment and Eastern Air go up and down completely randomly.
Pair Corralation between Metro Investment and Eastern Air
Assuming the 90 days trading horizon Metro Investment Development is expected to under-perform the Eastern Air. In addition to that, Metro Investment is 1.18 times more volatile than Eastern Air Logistics. It trades about -0.04 of its total potential returns per unit of risk. Eastern Air Logistics is currently generating about 0.06 per unit of volatility. If you would invest 1,684 in Eastern Air Logistics on October 23, 2024 and sell it today you would earn a total of 48.00 from holding Eastern Air Logistics or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Metro Investment Development vs. Eastern Air Logistics
Performance |
| Timeline |
| Metro Investment Dev |
| Eastern Air Logistics |
Metro Investment and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Eastern Air
The main advantage of trading using opposite Metro Investment and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment 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.| Metro Investment vs. Konfoong Materials International | Metro Investment vs. Advanced Technology Materials | Metro Investment vs. Ningbo Tip Rubber | Metro Investment vs. Jiangnan Mould Plastic |
| Eastern Air vs. Sportsoul Co Ltd | Eastern Air vs. Xingguang Agricultural Mach | Eastern Air vs. Wasu Media Holding | Eastern Air vs. Zhejiang Yinlun Machinery |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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