Correlation Between Eastern Air and China Petroleum
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By analyzing existing cross correlation between Eastern Air Logistics and China Petroleum Chemical, you can compare the effects of market volatilities on Eastern Air and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and China Petroleum.
Diversification Opportunities for Eastern Air and China Petroleum
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastern and China is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Eastern Air i.e., Eastern Air and China Petroleum go up and down completely randomly.
Pair Corralation between Eastern Air and China Petroleum
Assuming the 90 days trading horizon Eastern Air Logistics is expected to under-perform the China Petroleum. In addition to that, Eastern Air is 1.56 times more volatile than China Petroleum Chemical. It trades about -0.04 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.01 per unit of volatility. If you would invest 632.00 in China Petroleum Chemical on September 3, 2024 and sell it today you would earn a total of 4.00 from holding China Petroleum Chemical or generate 0.63% 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. China Petroleum Chemical
Performance |
| Timeline |
| Eastern Air Logistics |
| China Petroleum Chemical |
Eastern Air and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and China Petroleum
The main advantage of trading using opposite Eastern Air and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Eastern Air vs. Fiberhome Telecommunication Technologies | Eastern Air vs. Ningbo Tech Bank Co | Eastern Air vs. Unisplendour Corp | Eastern Air vs. China Construction Bank |
| China Petroleum vs. Eastern Air Logistics | China Petroleum vs. Ningbo Fangzheng Automobile | China Petroleum vs. Xinhua Winshare Publishing | China Petroleum vs. Jiangsu Phoenix Publishing |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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