Correlation Between Eastern Air and Chengdu B-ray
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By analyzing existing cross correlation between Eastern Air Logistics and Chengdu B ray Media, you can compare the effects of market volatilities on Eastern Air and Chengdu B-ray 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 Chengdu B-ray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Chengdu B-ray.
Diversification Opportunities for Eastern Air and Chengdu B-ray
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eastern and Chengdu is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B-ray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Eastern Air i.e., Eastern Air and Chengdu B-ray go up and down completely randomly.
Pair Corralation between Eastern Air and Chengdu B-ray
Assuming the 90 days trading horizon Eastern Air Logistics is expected to under-perform the Chengdu B-ray. In addition to that, Eastern Air is 1.16 times more volatile than Chengdu B ray Media. It trades about -0.01 of its total potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.06 per unit of volatility. If you would invest 440.00 in Chengdu B ray Media on November 5, 2024 and sell it today you would earn a total of 9.00 from holding Chengdu B ray Media or generate 2.05% 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. Chengdu B ray Media
Performance |
| Timeline |
| Eastern Air Logistics |
| Chengdu B ray |
Eastern Air and Chengdu B-ray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Chengdu B-ray
The main advantage of trading using opposite Eastern Air and Chengdu B-ray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Chengdu B-ray 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 Chengdu B-ray will offset losses from the drop in Chengdu B-ray's long position.| Eastern Air vs. Changchun Engley Automobile | Eastern Air vs. HengFeng Information Technology | Eastern Air vs. Jinxiandai Information Industry | Eastern Air vs. YLZ Information Tech |
| Chengdu B-ray vs. Jiangxi Naipu Mining | Chengdu B-ray vs. Invengo Information Technology | Chengdu B-ray vs. Dawning Information Industry | Chengdu B-ray vs. Shengda Mining 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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