Correlation Between Eastern Air and Zhejiang Juhua
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By analyzing existing cross correlation between Eastern Air Logistics and Zhejiang Juhua Co, you can compare the effects of market volatilities on Eastern Air and Zhejiang Juhua 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 Zhejiang Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Zhejiang Juhua.
Diversification Opportunities for Eastern Air and Zhejiang Juhua
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastern and Zhejiang is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Zhejiang Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Eastern Air i.e., Eastern Air and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Eastern Air and Zhejiang Juhua
Assuming the 90 days trading horizon Eastern Air is expected to generate 2.17 times less return on investment than Zhejiang Juhua. In addition to that, Eastern Air is 1.06 times more volatile than Zhejiang Juhua Co. It trades about 0.07 of its total potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.16 per unit of volatility. If you would invest 2,237 in Zhejiang Juhua Co on October 30, 2024 and sell it today you would earn a total of 330.00 from holding Zhejiang Juhua Co or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Zhejiang Juhua Co
Performance |
| Timeline |
| Eastern Air Logistics |
| Zhejiang Juhua |
Eastern Air and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Zhejiang Juhua
The main advantage of trading using opposite Eastern Air and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Zhejiang Juhua 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 Zhejiang Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Eastern Air vs. Everjoy Health Group | Eastern Air vs. Humanwell Healthcare Group | Eastern Air vs. Sanbo Hospital Management | Eastern Air vs. Harvest Fund Management |
| Zhejiang Juhua vs. Dawning Information Industry | Zhejiang Juhua vs. Tongding Interconnection Information | Zhejiang Juhua vs. Ningbo Kangqiang Electronics | Zhejiang Juhua vs. TongFu Microelectronics 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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