Correlation Between Air China and Eit Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Air China Ltd and Eit Environmental Development, you can compare the effects of market volatilities on Air China and Eit Environmental 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 Air China with a short position of Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air China and Eit Environmental.
Diversification Opportunities for Air China and Eit Environmental
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and Eit is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Air China Ltd and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit Environmental and Air China 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 Air China Ltd are associated (or correlated) with Eit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eit Environmental has no effect on the direction of Air China i.e., Air China and Eit Environmental go up and down completely randomly.
Pair Corralation between Air China and Eit Environmental
Assuming the 90 days trading horizon Air China Ltd is expected to under-perform the Eit Environmental. In addition to that, Air China is 1.13 times more volatile than Eit Environmental Development. It trades about -0.1 of its total potential returns per unit of risk. Eit Environmental Development is currently generating about 0.0 per unit of volatility. If you would invest 1,556 in Eit Environmental Development on October 30, 2024 and sell it today you would lose (14.00) from holding Eit Environmental Development or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air China Ltd vs. Eit Environmental Development
Performance |
| Timeline |
| Air China |
| Eit Environmental |
Air China and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air China and Eit Environmental
The main advantage of trading using opposite Air China and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air China position performs unexpectedly, Eit Environmental 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 Eit Environmental will offset losses from the drop in Eit Environmental's long position.| Air China vs. Innovative Medical Management | Air China vs. Sichuan Yahua Industrial | Air China vs. Hainan Airlines Co | Air China vs. CICC Fund Management |
| Eit Environmental vs. Healthcare Co | Eit Environmental vs. Shanghai Rongtai Health | Eit Environmental vs. JCHX Mining Management | Eit Environmental vs. AVIC Fund Management |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |