Correlation Between Eastern Air and Cinda Securities
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By analyzing existing cross correlation between Eastern Air Logistics and Cinda Securities Co, you can compare the effects of market volatilities on Eastern Air and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Cinda Securities.
Diversification Opportunities for Eastern Air and Cinda Securities
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Cinda is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Eastern Air i.e., Eastern Air and Cinda Securities go up and down completely randomly.
Pair Corralation between Eastern Air and Cinda Securities
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 0.89 times more return on investment than Cinda Securities. However, Eastern Air Logistics is 1.12 times less risky than Cinda Securities. It trades about 0.04 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.04 per unit of risk. If you would invest 1,686 in Eastern Air Logistics on September 14, 2024 and sell it today you would earn a total of 23.00 from holding Eastern Air Logistics or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Cinda Securities Co
Performance |
| Timeline |
| Eastern Air Logistics |
| Cinda Securities |
Eastern Air and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Cinda Securities
The main advantage of trading using opposite Eastern Air and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Eastern Air vs. Cultural Investment Holdings | Eastern Air vs. Gome Telecom Equipment | Eastern Air vs. Holitech Technology Co | Eastern Air vs. Zotye Automobile Co |
| Cinda Securities vs. Chison Medical Technologies | Cinda Securities vs. Eastern Air Logistics | Cinda Securities vs. Hangzhou Gisway Information | Cinda Securities vs. Air China Ltd |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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