Correlation Between Eastern Air and Ming Yang
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By analyzing existing cross correlation between Eastern Air Logistics and Ming Yang Smart, you can compare the effects of market volatilities on Eastern Air and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Ming Yang.
Diversification Opportunities for Eastern Air and Ming Yang
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastern and Ming is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Eastern Air i.e., Eastern Air and Ming Yang go up and down completely randomly.
Pair Corralation between Eastern Air and Ming Yang
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 1.07 times more return on investment than Ming Yang. However, Eastern Air is 1.07 times more volatile than Ming Yang Smart. It trades about 0.05 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.01 per unit of risk. If you would invest 1,167 in Eastern Air Logistics on September 1, 2024 and sell it today you would earn a total of 381.00 from holding Eastern Air Logistics or generate 32.65% 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. Ming Yang Smart
Performance |
| Timeline |
| Eastern Air Logistics |
| Ming Yang Smart |
Eastern Air and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Ming Yang
The main advantage of trading using opposite Eastern Air and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Eastern Air vs. Tianjin Silvery Dragon | Eastern Air vs. Keeson Technology Corp | Eastern Air vs. Fujian Oriental Silver | Eastern Air vs. Xinjiang Baodi Mining |
| Ming Yang vs. Xilong Chemical Co | Ming Yang vs. Wuxi Chemical Equipment | Ming Yang vs. Shenyang Chemical Industry | Ming Yang vs. Tianshui Huatian Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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