Correlation Between Eastern Air and Anhui Tongguan
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By analyzing existing cross correlation between Eastern Air Logistics and Anhui Tongguan Copper, you can compare the effects of market volatilities on Eastern Air and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Anhui Tongguan.
Diversification Opportunities for Eastern Air and Anhui Tongguan
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastern and Anhui is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Eastern Air i.e., Eastern Air and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Eastern Air and Anhui Tongguan
Assuming the 90 days trading horizon Eastern Air Logistics is expected to under-perform the Anhui Tongguan. But the stock apears to be less risky and, when comparing its historical volatility, Eastern Air Logistics is 1.17 times less risky than Anhui Tongguan. The stock trades about 0.0 of its potential returns per unit of risk. The Anhui Tongguan Copper is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,055 in Anhui Tongguan Copper on November 3, 2024 and sell it today you would lose (9.00) from holding Anhui Tongguan Copper or give up 0.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Eastern Air Logistics |
| Anhui Tongguan Copper |
Eastern Air and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Anhui Tongguan
The main advantage of trading using opposite Eastern Air and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Eastern Air vs. Shenzhen Centralcon Investment | Eastern Air vs. HeNan Splendor Science | Eastern Air vs. Citic Offshore Helicopter | Eastern Air vs. CSSC Offshore Marine |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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