Correlation Between Eastern Air and Shandong Rike
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By analyzing existing cross correlation between Eastern Air Logistics and Shandong Rike Chemical, you can compare the effects of market volatilities on Eastern Air and Shandong Rike 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 Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Shandong Rike.
Diversification Opportunities for Eastern Air and Shandong Rike
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastern and Shandong is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical 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 Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of Eastern Air i.e., Eastern Air and Shandong Rike go up and down completely randomly.
Pair Corralation between Eastern Air and Shandong Rike
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 0.69 times more return on investment than Shandong Rike. However, Eastern Air Logistics is 1.46 times less risky than Shandong Rike. It trades about 0.04 of its potential returns per unit of risk. Shandong Rike Chemical is currently generating about -0.04 per unit of risk. If you would invest 1,683 in Eastern Air Logistics on October 29, 2024 and sell it today you would earn a total of 25.00 from holding Eastern Air Logistics or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Shandong Rike Chemical
Performance |
| Timeline |
| Eastern Air Logistics |
| Shandong Rike Chemical |
Eastern Air and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Shandong Rike
The main advantage of trading using opposite Eastern Air and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Shandong Rike 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 Shandong Rike will offset losses from the drop in Shandong Rike's long position.| Eastern Air vs. Zhejiang Publishing Media | Eastern Air vs. China Life Insurance | Eastern Air vs. Queclink Wireless Solutions | Eastern Air vs. Heilongjiang Publishing Media |
| Shandong Rike vs. Longjian Road Bridge | Shandong Rike vs. Kangping Technology Co | Shandong Rike vs. Anhui Transport Consulting | Shandong Rike vs. Holitech Technology 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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