Correlation Between Shaanxi Broadcast and China Eastern
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By analyzing existing cross correlation between Shaanxi Broadcast TV and China Eastern Airlines, you can compare the effects of market volatilities on Shaanxi Broadcast 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 Shaanxi Broadcast with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and China Eastern.
Diversification Opportunities for Shaanxi Broadcast and China Eastern
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV 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 Shaanxi Broadcast 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 Shaanxi Broadcast TV 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 Shaanxi Broadcast i.e., Shaanxi Broadcast and China Eastern go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and China Eastern
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to under-perform the China Eastern. In addition to that, Shaanxi Broadcast is 1.97 times more volatile than China Eastern Airlines. It trades about -0.5 of its total potential returns per unit of risk. China Eastern Airlines is currently generating about -0.55 per unit of volatility. If you would invest 433.00 in China Eastern Airlines on October 12, 2024 and sell it today you would lose (59.00) from holding China Eastern Airlines or give up 13.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. China Eastern Airlines
Performance |
| Timeline |
| Shaanxi Broadcast |
| China Eastern Airlines |
Shaanxi Broadcast and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and China Eastern
The main advantage of trading using opposite Shaanxi Broadcast and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast 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.| Shaanxi Broadcast vs. Nanxing Furniture Machinery | Shaanxi Broadcast vs. Shaanxi Construction Machinery | Shaanxi Broadcast vs. Shenwu Energy Saving | Shaanxi Broadcast vs. Sinomach General Machinery |
| China Eastern vs. AVIC Fund Management | China Eastern vs. Jiangsu Broadcasting Cable | China Eastern vs. Cicc Fund Management | China Eastern vs. Shaanxi Broadcast TV |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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