Correlation Between Eastern Air and Hainan Mining
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By analyzing existing cross correlation between Eastern Air Logistics and Hainan Mining Co, you can compare the effects of market volatilities on Eastern Air and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Hainan Mining.
Diversification Opportunities for Eastern Air and Hainan Mining
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Hainan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Eastern Air i.e., Eastern Air and Hainan Mining go up and down completely randomly.
Pair Corralation between Eastern Air and Hainan Mining
Assuming the 90 days trading horizon Eastern Air Logistics is expected to under-perform the Hainan Mining. But the stock apears to be less risky and, when comparing its historical volatility, Eastern Air Logistics is 1.08 times less risky than Hainan Mining. The stock trades about -0.24 of its potential returns per unit of risk. The Hainan Mining Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 697.00 in Hainan Mining Co on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Hainan Mining Co or generate 0.86% 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. Hainan Mining Co
Performance |
| Timeline |
| Eastern Air Logistics |
| Hainan Mining |
Eastern Air and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Hainan Mining
The main advantage of trading using opposite Eastern Air and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining'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 |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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