Correlation Between Eastern Air and Guangzhou Haozhi
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By analyzing existing cross correlation between Eastern Air Logistics and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Eastern Air and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Guangzhou Haozhi.
Diversification Opportunities for Eastern Air and Guangzhou Haozhi
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastern and Guangzhou is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Eastern Air i.e., Eastern Air and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Eastern Air and Guangzhou Haozhi
Assuming the 90 days trading horizon Eastern Air is expected to generate 17.29 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Eastern Air Logistics is 1.94 times less risky than Guangzhou Haozhi. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 999.00 in Guangzhou Haozhi Industrial on November 27, 2024 and sell it today you would earn a total of 2,001 from holding Guangzhou Haozhi Industrial or generate 200.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Eastern Air Logistics |
| Guangzhou Haozhi Ind |
Eastern Air and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Guangzhou Haozhi
The main advantage of trading using opposite Eastern Air and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Eastern Air vs. Qiaoyin Environmental Tech | Eastern Air vs. Metro Investment Development | Eastern Air vs. Baoshan Iron Steel | Eastern Air vs. Fangda Special Steel |
| Guangzhou Haozhi vs. Rongcheer Industrial Technology | Guangzhou Haozhi vs. Jiangsu Jinling Sports | Guangzhou Haozhi vs. Caihong Display Devices | Guangzhou Haozhi vs. Sportsoul Co Ltd |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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