Correlation Between Eastern Air and Cansino Biologics
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By analyzing existing cross correlation between Eastern Air Logistics and Cansino Biologics, you can compare the effects of market volatilities on Eastern Air and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and Cansino Biologics.
Diversification Opportunities for Eastern Air and Cansino Biologics
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastern and Cansino is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Eastern Air i.e., Eastern Air and Cansino Biologics go up and down completely randomly.
Pair Corralation between Eastern Air and Cansino Biologics
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 1.6 times more return on investment than Cansino Biologics. However, Eastern Air is 1.6 times more volatile than Cansino Biologics. It trades about -0.04 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.13 per unit of risk. If you would invest 1,687 in Eastern Air Logistics on November 1, 2024 and sell it today you would lose (48.00) from holding Eastern Air Logistics or give up 2.85% 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. Cansino Biologics
Performance |
| Timeline |
| Eastern Air Logistics |
| Cansino Biologics |
Eastern Air and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and Cansino Biologics
The main advantage of trading using opposite Eastern Air and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Eastern Air vs. DO Home Collection | Eastern Air vs. China Sports Industry | Eastern Air vs. Heilongjiang Transport Development | Eastern Air vs. Jiangsu Jinling Sports |
| Cansino Biologics vs. Sinocelltech Group | Cansino Biologics vs. Ningbo Bohui Chemical | Cansino Biologics vs. Kuang Chi Technologies | Cansino Biologics vs. Liaoning Dingjide Petrochemical |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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