Correlation Between Eastern Air and Threes Company
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By analyzing existing cross correlation between Eastern Air Logistics and Threes Company Media, you can compare the effects of market volatilities on Eastern Air and Threes Company 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 Threes Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Threes Company.
Diversification Opportunities for Eastern Air and Threes Company
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastern and Threes is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Threes Company Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Threes Company 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 Threes Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Threes Company has no effect on the direction of Eastern Air i.e., Eastern Air and Threes Company go up and down completely randomly.
Pair Corralation between Eastern Air and Threes Company
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 0.73 times more return on investment than Threes Company. However, Eastern Air Logistics is 1.37 times less risky than Threes Company. It trades about -0.03 of its potential returns per unit of risk. Threes Company Media is currently generating about -0.26 per unit of risk. If you would invest 1,683 in Eastern Air Logistics on October 30, 2024 and sell it today you would lose (44.00) from holding Eastern Air Logistics or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. Threes Company Media
Performance |
| Timeline |
| Eastern Air Logistics |
| Threes Company |
Eastern Air and Threes Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Threes Company
The main advantage of trading using opposite Eastern Air and Threes Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Threes Company 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 Threes Company will offset losses from the drop in Threes Company's long position.| Eastern Air vs. Everjoy Health Group | Eastern Air vs. Humanwell Healthcare Group | Eastern Air vs. Sanbo Hospital Management | Eastern Air vs. Harvest Fund Management |
| Threes Company vs. China Petroleum Chemical | Threes Company vs. PetroChina Co Ltd | Threes Company vs. China State Construction | Threes Company vs. China Railway Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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