Correlation Between Eastern Air and Northking Information
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By analyzing existing cross correlation between Eastern Air Logistics and Northking Information Technology, you can compare the effects of market volatilities on Eastern Air and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Northking Information.
Diversification Opportunities for Eastern Air and Northking Information
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastern and Northking is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Eastern Air i.e., Eastern Air and Northking Information go up and down completely randomly.
Pair Corralation between Eastern Air and Northking Information
Assuming the 90 days trading horizon Eastern Air Logistics is expected to under-perform the Northking Information. But the stock apears to be less risky and, when comparing its historical volatility, Eastern Air Logistics is 1.65 times less risky than Northking Information. The stock trades about -0.21 of its potential returns per unit of risk. The Northking Information Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,487 in Northking Information Technology on September 5, 2024 and sell it today you would earn a total of 102.00 from holding Northking Information Technology or generate 6.86% 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. Northking Information Technolo
Performance |
| Timeline |
| Eastern Air Logistics |
| Northking Information |
Eastern Air and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Northking Information
The main advantage of trading using opposite Eastern Air and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Eastern Air vs. New China Life | Eastern Air vs. Ming Yang Smart | Eastern Air vs. 159681 | Eastern Air vs. 159005 |
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 Positions Ratings module to 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.
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