Correlation Between Eastern Air and Lander Sports
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By analyzing existing cross correlation between Eastern Air Logistics and Lander Sports Development, you can compare the effects of market volatilities on Eastern Air and Lander Sports 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 Eastern Air with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Lander Sports.
Diversification Opportunities for Eastern Air and Lander Sports
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastern and Lander is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Eastern Air 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 Eastern Air Logistics are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Eastern Air i.e., Eastern Air and Lander Sports go up and down completely randomly.
Pair Corralation between Eastern Air and Lander Sports
Assuming the 90 days trading horizon Eastern Air Logistics is expected to under-perform the Lander Sports. But the stock apears to be less risky and, when comparing its historical volatility, Eastern Air Logistics is 1.72 times less risky than Lander Sports. The stock trades about -0.26 of its potential returns per unit of risk. The Lander Sports Development is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 296.00 in Lander Sports Development on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Lander Sports Development or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Lander Sports Development
Performance |
| Timeline |
| Eastern Air Logistics |
| Lander Sports Development |
Eastern Air and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Lander Sports
The main advantage of trading using opposite Eastern Air and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Eastern Air vs. GRINM Semiconductor Materials | Eastern Air vs. Jonjee Hi tech Industrial | Eastern Air vs. Eastern Communications Co | Eastern Air vs. Zhejiang JIULI Hi tech |
| Lander Sports vs. Shandong Sinoglory Health | Lander Sports vs. Lotus Health Group | Lander Sports vs. Yunnan Jianzhijia Health Chain | Lander Sports vs. De Rucci Healthy |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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