Correlation Between Eastern Air and Thinkingdom Media
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By analyzing existing cross correlation between Eastern Air Logistics and Thinkingdom Media Group, you can compare the effects of market volatilities on Eastern Air and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Thinkingdom Media.
Diversification Opportunities for Eastern Air and Thinkingdom Media
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastern and Thinkingdom is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Eastern Air i.e., Eastern Air and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Eastern Air and Thinkingdom Media
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 0.8 times more return on investment than Thinkingdom Media. However, Eastern Air Logistics is 1.24 times less risky than Thinkingdom Media. It trades about 0.02 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.01 per unit of risk. If you would invest 1,466 in Eastern Air Logistics on November 7, 2024 and sell it today you would earn a total of 173.00 from holding Eastern Air Logistics or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Thinkingdom Media Group
Performance |
| Timeline |
| Eastern Air Logistics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Thinkingdom Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Eastern Air and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Thinkingdom Media
The main advantage of trading using opposite Eastern Air and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.The idea behind Eastern Air Logistics and Thinkingdom Media Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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