Correlation Between Eastern Air and Guangdong Liantai
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By analyzing existing cross correlation between Eastern Air Logistics and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Eastern Air and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Guangdong Liantai.
Diversification Opportunities for Eastern Air and Guangdong Liantai
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastern and Guangdong is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Eastern Air i.e., Eastern Air and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Eastern Air and Guangdong Liantai
Assuming the 90 days trading horizon Eastern Air Logistics is expected to under-perform the Guangdong Liantai. In addition to that, Eastern Air is 1.02 times more volatile than Guangdong Liantai Environmental. It trades about -0.13 of its total potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about 0.0 per unit of volatility. If you would invest 406.00 in Guangdong Liantai Environmental on January 27, 2025 and sell it today you would lose (3.00) from holding Guangdong Liantai Environmental or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Eastern Air Logistics |
| Guangdong Liantai |
Eastern Air and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Guangdong Liantai
The main advantage of trading using opposite Eastern Air and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| Eastern Air vs. Gansu Huangtai Wine marketing | Eastern Air vs. Zhengzhou Coal Mining | Eastern Air vs. Citic Guoan Wine | Eastern Air vs. Shuhua Sports Co |
| Guangdong Liantai vs. Nanjing Putian Telecommunications | Guangdong Liantai vs. Guangdong Songfa Ceramics | Guangdong Liantai vs. Cloud Live Technology | Guangdong Liantai vs. Shenzhen Coship Electronics |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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