Correlation Between Eastern Air and Jiangsu Yanghe
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By analyzing existing cross correlation between Eastern Air Logistics and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Eastern Air and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Jiangsu Yanghe.
Diversification Opportunities for Eastern Air and Jiangsu Yanghe
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Jiangsu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Eastern Air i.e., Eastern Air and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Eastern Air and Jiangsu Yanghe
Assuming the 90 days trading horizon Eastern Air is expected to generate 4.17 times less return on investment than Jiangsu Yanghe. But when comparing it to its historical volatility, Eastern Air Logistics is 1.23 times less risky than Jiangsu Yanghe. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,300 in Jiangsu Yanghe Brewery on September 12, 2024 and sell it today you would earn a total of 1,284 from holding Jiangsu Yanghe Brewery or generate 17.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Eastern Air Logistics vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Eastern Air Logistics |
| Jiangsu Yanghe Brewery |
Eastern Air and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Jiangsu Yanghe
The main advantage of trading using opposite Eastern Air and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Eastern Air vs. Thinkingdom Media Group | Eastern Air vs. State Grid InformationCommunication | Eastern Air vs. Digital China Information | Eastern Air vs. Beijing Bashi Media |
| Jiangsu Yanghe vs. China Life Insurance | Jiangsu Yanghe vs. Cinda Securities Co | Jiangsu Yanghe vs. Piotech Inc A | Jiangsu Yanghe vs. Dongxing Sec Co |
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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