Correlation Between Eastern Air and Anyang Iron
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By analyzing existing cross correlation between Eastern Air Logistics and Anyang Iron Steel, you can compare the effects of market volatilities on Eastern Air and Anyang Iron 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 Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Anyang Iron.
Diversification Opportunities for Eastern Air and Anyang Iron
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastern and Anyang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel 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 Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Eastern Air i.e., Eastern Air and Anyang Iron go up and down completely randomly.
Pair Corralation between Eastern Air and Anyang Iron
Assuming the 90 days trading horizon Eastern Air Logistics is expected to under-perform the Anyang Iron. But the stock apears to be less risky and, when comparing its historical volatility, Eastern Air Logistics is 1.04 times less risky than Anyang Iron. The stock trades about -0.04 of its potential returns per unit of risk. The Anyang Iron Steel is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 176.00 in Anyang Iron Steel on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Anyang Iron Steel or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Anyang Iron Steel
Performance |
| Timeline |
| Eastern Air Logistics |
| Anyang Iron Steel |
Eastern Air and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Anyang Iron
The main advantage of trading using opposite Eastern Air and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron'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 |
| Anyang Iron vs. ChengDu Hi Tech Development | Anyang Iron vs. Chahua Modern Housewares | Anyang Iron vs. Jiangxi Hengda Hi Tech | Anyang Iron vs. Jonjee Hi tech Industrial |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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