Correlation Between Eastern Air and Shenzhen MTC
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By analyzing existing cross correlation between Eastern Air Logistics and Shenzhen MTC Co, you can compare the effects of market volatilities on Eastern Air and Shenzhen MTC 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 MTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Shenzhen MTC.
Diversification Opportunities for Eastern Air and Shenzhen MTC
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Shenzhen MTC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MTC 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 MTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MTC has no effect on the direction of Eastern Air i.e., Eastern Air and Shenzhen MTC go up and down completely randomly.
Pair Corralation between Eastern Air and Shenzhen MTC
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 1.12 times more return on investment than Shenzhen MTC. However, Eastern Air is 1.12 times more volatile than Shenzhen MTC Co. It trades about 0.02 of its potential returns per unit of risk. Shenzhen MTC Co is currently generating about -0.01 per unit of risk. If you would invest 1,516 in Eastern Air Logistics on August 27, 2024 and sell it today you would earn a total of 68.00 from holding Eastern Air Logistics or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Shenzhen MTC Co
Performance |
| Timeline |
| Eastern Air Logistics |
| Shenzhen MTC |
Eastern Air and Shenzhen MTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Shenzhen MTC
The main advantage of trading using opposite Eastern Air and Shenzhen MTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Shenzhen MTC 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 MTC will offset losses from the drop in Shenzhen MTC's long position.| Eastern Air vs. China Life Insurance | Eastern Air vs. Piotech Inc A | Eastern Air vs. Dongxing Sec Co | Eastern Air vs. Shanghai OPM Biosciences |
| Shenzhen MTC vs. Eastern Air Logistics | Shenzhen MTC vs. Humanwell Healthcare Group | Shenzhen MTC vs. Shanghai Rongtai Health | Shenzhen MTC 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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