Correlation Between Eastern Air and Shenzhen Worldunion
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By analyzing existing cross correlation between Eastern Air Logistics and Shenzhen Worldunion Properties, you can compare the effects of market volatilities on Eastern Air and Shenzhen Worldunion 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 Shenzhen Worldunion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Shenzhen Worldunion.
Diversification Opportunities for Eastern Air and Shenzhen Worldunion
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastern and Shenzhen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Shenzhen Worldunion Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Worldunion 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 Shenzhen Worldunion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Worldunion has no effect on the direction of Eastern Air i.e., Eastern Air and Shenzhen Worldunion go up and down completely randomly.
Pair Corralation between Eastern Air and Shenzhen Worldunion
Assuming the 90 days trading horizon Eastern Air is expected to generate 1.98 times less return on investment than Shenzhen Worldunion. But when comparing it to its historical volatility, Eastern Air Logistics is 1.92 times less risky than Shenzhen Worldunion. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Worldunion Properties is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Shenzhen Worldunion Properties on September 15, 2024 and sell it today you would earn a total of 9.00 from holding Shenzhen Worldunion Properties or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Shenzhen Worldunion Properties
Performance |
| Timeline |
| Eastern Air Logistics |
| Shenzhen Worldunion |
Eastern Air and Shenzhen Worldunion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Shenzhen Worldunion
The main advantage of trading using opposite Eastern Air and Shenzhen Worldunion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Shenzhen Worldunion 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 Shenzhen Worldunion will offset losses from the drop in Shenzhen Worldunion's long position.| Eastern Air vs. Cultural Investment Holdings | Eastern Air vs. Gome Telecom Equipment | Eastern Air vs. Holitech Technology Co | Eastern Air vs. Zotye Automobile Co |
| Shenzhen Worldunion vs. Hubeiyichang Transportation Group | Shenzhen Worldunion vs. Eastern Air Logistics | Shenzhen Worldunion vs. Ligao Foods CoLtd | Shenzhen Worldunion vs. Guangdong Wens Foodstuff |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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