Correlation Between Eastern Air and Shandong Ruifeng
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By analyzing existing cross correlation between Eastern Air Logistics and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Eastern Air and Shandong Ruifeng 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 Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Shandong Ruifeng.
Diversification Opportunities for Eastern Air and Shandong Ruifeng
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eastern and Shandong is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng 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 Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Eastern Air i.e., Eastern Air and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Eastern Air and Shandong Ruifeng
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 0.5 times more return on investment than Shandong Ruifeng. However, Eastern Air Logistics is 2.02 times less risky than Shandong Ruifeng. It trades about -0.04 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about -0.14 per unit of risk. If you would invest 1,684 in Eastern Air Logistics on September 13, 2024 and sell it today you would lose (33.00) from holding Eastern Air Logistics or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Eastern Air Logistics |
| Shandong Ruifeng Chemical |
Eastern Air and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Shandong Ruifeng
The main advantage of trading using opposite Eastern Air and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Shandong Ruifeng 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 Ruifeng will offset losses from the drop in Shandong Ruifeng'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 |
| Shandong Ruifeng vs. Jahen Household Products | Shandong Ruifeng vs. Will Semiconductor Co | Shandong Ruifeng vs. GRINM Semiconductor Materials | Shandong Ruifeng vs. Eastern Air Logistics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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