Correlation Between Zhangjiagang Elegant and China Eastern
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By analyzing existing cross correlation between Zhangjiagang Elegant Home and China Eastern Airlines, you can compare the effects of market volatilities on Zhangjiagang Elegant and China Eastern 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 Zhangjiagang Elegant with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Elegant and China Eastern.
Diversification Opportunities for Zhangjiagang Elegant and China Eastern
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhangjiagang and China is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Elegant Home and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines and Zhangjiagang Elegant 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 Zhangjiagang Elegant Home are associated (or correlated) with China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Zhangjiagang Elegant i.e., Zhangjiagang Elegant and China Eastern go up and down completely randomly.
Pair Corralation between Zhangjiagang Elegant and China Eastern
Assuming the 90 days trading horizon Zhangjiagang Elegant Home is expected to generate 2.85 times more return on investment than China Eastern. However, Zhangjiagang Elegant is 2.85 times more volatile than China Eastern Airlines. It trades about -0.17 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.54 per unit of risk. If you would invest 1,020 in Zhangjiagang Elegant Home on October 11, 2024 and sell it today you would lose (135.00) from holding Zhangjiagang Elegant Home or give up 13.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Elegant Home vs. China Eastern Airlines
Performance |
| Timeline |
| Zhangjiagang Elegant Home |
| China Eastern Airlines |
Zhangjiagang Elegant and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Elegant and China Eastern
The main advantage of trading using opposite Zhangjiagang Elegant and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Elegant position performs unexpectedly, China Eastern 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 Eastern will offset losses from the drop in China Eastern's long position.| Zhangjiagang Elegant vs. China Eastern Airlines | Zhangjiagang Elegant vs. Financial Street Holdings | Zhangjiagang Elegant vs. Agricultural Bank of | Zhangjiagang Elegant vs. Ping An Insurance |
| China Eastern vs. AVIC Fund Management | China Eastern vs. Jiangsu Broadcasting Cable | China Eastern vs. Cicc Fund Management | China Eastern vs. Shaanxi Broadcast TV |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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