Correlation Between Eastern Air and Pengxin International
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By analyzing existing cross correlation between Eastern Air Logistics and Pengxin International Mining, you can compare the effects of market volatilities on Eastern Air and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Pengxin International.
Diversification Opportunities for Eastern Air and Pengxin International
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastern and Pengxin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Eastern Air i.e., Eastern Air and Pengxin International go up and down completely randomly.
Pair Corralation between Eastern Air and Pengxin International
Assuming the 90 days trading horizon Eastern Air is expected to generate 2.93 times less return on investment than Pengxin International. But when comparing it to its historical volatility, Eastern Air Logistics is 1.34 times less risky than Pengxin International. It trades about 0.02 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 244.00 in Pengxin International Mining on November 4, 2024 and sell it today you would earn a total of 71.00 from holding Pengxin International Mining or generate 29.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Pengxin International Mining
Performance |
| Timeline |
| Eastern Air Logistics |
| Pengxin International |
Eastern Air and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Pengxin International
The main advantage of trading using opposite Eastern Air and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International'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 |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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