Correlation Between Fujian Oriental and Eastern Air
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By analyzing existing cross correlation between Fujian Oriental Silver and Eastern Air Logistics, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Eastern Air.
Diversification Opportunities for Fujian Oriental and Eastern Air
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Eastern is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver 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 Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Eastern Air go up and down completely randomly.
Pair Corralation between Fujian Oriental and Eastern Air
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to generate 1.71 times more return on investment than Eastern Air. However, Fujian Oriental is 1.71 times more volatile than Eastern Air Logistics. It trades about 0.02 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about -0.31 per unit of risk. If you would invest 726.00 in Fujian Oriental Silver on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Fujian Oriental Silver or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Eastern Air Logistics
Performance |
| Timeline |
| Fujian Oriental Silver |
| Eastern Air Logistics |
Fujian Oriental and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Eastern Air
The main advantage of trading using opposite Fujian Oriental and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China | Fujian Oriental vs. Agricultural Bank of |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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