Correlation Between Eastern Air and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastern Air Logistics and China Railway Construction, you can compare the effects of market volatilities on Eastern Air and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Air and China Railway.
Diversification Opportunities for Eastern Air and China Railway
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eastern and China is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Air Logistics and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Eastern Air i.e., Eastern Air and China Railway go up and down completely randomly.
Pair Corralation between Eastern Air and China Railway
Assuming the 90 days trading horizon Eastern Air Logistics is expected to generate 1.02 times more return on investment than China Railway. However, Eastern Air is 1.02 times more volatile than China Railway Construction. It trades about -0.09 of its potential returns per unit of risk. China Railway Construction is currently generating about -0.28 per unit of risk. If you would invest 1,662 in Eastern Air Logistics on October 17, 2024 and sell it today you would lose (56.00) from holding Eastern Air Logistics or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Air Logistics vs. China Railway Construction
Performance |
| Timeline |
| Eastern Air Logistics |
| China Railway Constr |
Eastern Air and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Air and China Railway
The main advantage of trading using opposite Eastern Air and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Air position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Eastern Air vs. Xizi Clean Energy | Eastern Air vs. State Grid InformationCommunication | Eastern Air vs. Shaanxi Meineng Clean | Eastern Air vs. Anhui Transport Consulting |
| China Railway vs. Unisplendour Corp | China Railway vs. Jiangsu Financial Leasing | China Railway vs. Eastern Air Logistics | China Railway vs. Panda Financial Holding |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |