Correlation Between Sunny Loan and China Eastern
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By analyzing existing cross correlation between Sunny Loan Top and China Eastern Airlines, you can compare the effects of market volatilities on Sunny Loan and China Eastern 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 Sunny Loan with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and China Eastern.
Diversification Opportunities for Sunny Loan and China Eastern
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunny and China is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Sunny Loan i.e., Sunny Loan and China Eastern go up and down completely randomly.
Pair Corralation between Sunny Loan and China Eastern
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the China Eastern. In addition to that, Sunny Loan is 2.12 times more volatile than China Eastern Airlines. It trades about -0.18 of its total potential returns per unit of risk. China Eastern Airlines is currently generating about 0.01 per unit of volatility. If you would invest 408.00 in China Eastern Airlines on October 20, 2024 and sell it today you would earn a total of 1.00 from holding China Eastern Airlines or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. China Eastern Airlines
Performance |
| Timeline |
| Sunny Loan Top |
| China Eastern Airlines |
Sunny Loan and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and China Eastern
The main advantage of trading using opposite Sunny Loan and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| Sunny Loan vs. Industrial and Commercial | Sunny Loan vs. Agricultural Bank of | Sunny Loan vs. China Construction Bank | Sunny Loan vs. Bank of China |
| China Eastern vs. China State Construction | China Eastern vs. Poly Real Estate | China Eastern vs. China Vanke Co | China Eastern vs. China Merchants Shekou |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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